Lynas Corporation Ltd (ASX:LYC) has inked a $325 million financing arrangement with Japan's Sojitz Corporation to accelerate the expansion of its Mount Weld rare-earths project in Western Australia.
As part of the financing Lynas will undertake a fully underwritten $55 million institutional placement at $2.07 per share, as well raising $25 million through a share placement to Sojitz at $2.12 per share.
Sojitz and Japanese government agency financing will provide $250 million of the funds through a loan facility.
Under the deal the rare earths explorer has also agreed to allocate a minimum of 8,500 tonnes per year of rare earth to the Japanese market for ten years.
Shares in Lynas last traded at $2.18 before entering into a trading halt.
In the first six months of its 2011 financial year Lynas Corporation recorded a net loss of $20.5 million.
