Rare earths group Lynas Corporation Ltd
(ASX:LYC) is to undertake an equity raising to raise around $450 million.
The capital raising will be undertaken at a price of 45 cents a share and will consist of three tranches.
An $88 million unconditional placement of new shares to existing institutional shareholders and other institutional investors, a $295 million entitlement offer and a $67 million conditional placement.
The company says it decided to conduct the capital raising after China Nonferrous Metal Mining terminated a heads of agreement with it in relation to a proposed equity and debt investment.
Lynas says the proceeds from the raising will be used to fund the completion of phase one of the Lynas Rare Earths Project, enabling the company to lift the suspension of the project and complete construction and commissioning of both the construction plant in Western Australia and the advanced materials plant in Malaysia.
On February 10 Lynas suspended work on the Rare Earths Project pending finalisation of as revised financing structure. Looking back at the past five years Lynas Corp is yet to post a net profit.
Airport owner Macquarie Airports (ASX:MAP) meeting for shareholders to vote on a proposal to internalise the company’s management is to go ahead today after a consortium called the Global Airports consortium decided to abandon its attempt to gain an injunction against the meeting.
According to a report in the Australian Financial Review, Global Airports Mike Fitzpatrick says the consortium’s decision was after considering the size of damages the Macquarie Airports indicated it would seek if the injunction were granted and the hostile attitude towards its proposal.
Global Airports proposed to takeover Macquarie Airports management rights for between $20 million and $100 million.
The Independent Board Committees of Macquarie Airports says it is pleased that security holders will now have the opportunity to vote on the internalisation proposal, and recommends security holders vote in favour of the internalisation. Macquarie Airports posted profit of $2 billion in 2008.
A proposal by oil and gas explorer Beach Petroleum Ltd (ASX:BPT) to acquire a majority holding in junior explorer Essential Petroleum Resources Ltd (ASX:EPR) has been given support from the Essential board and the company’s major shareholder.
The proposal will see the debt owed to Beach Petroleum by Essential converted to shares representing a 51 per cent of the company’s voting shares on issue.
Essential will also transfer a 50 per cent interest in exploration licence PEP168 to Beach.
Essential says a $660,000 debt owed to Japan’s Mitsui is to be paid with proceeds from a capital raising of a minimum $2 million.
The two companies are preparing legally binding documents and have commenced the process for the calling of a general meeting. Beach Petroleum’s 2008 net profit was $63.73 million, down on the year before.
Mineral development company Strike Resources Ltd (ASX:SRK) is on the look-out for a new chairman after Dr John Stephenson advised the company that he intends to step down from the role.
The news comes after the company met to conduct a strategic review of its plans, projects and operations moving forward.
Mr Stephenson will remain on the board as a non-executive director.
The board says it has commenced a formal selection process to find a replacement.
Strike Resources also says that its primary focus remains in the development of the Apurimac Iron Ore Project through its interest in Peruvian company Apurimac Ferrum S.A.
The company halted exploration and development of the project after a dispute between Apurimac Ferrum shareholders, which has now been settled, and uncertainties in capital and resources markets.
Looking back over the past five years Strike Resources only net profit was in 2007.
