Australian regulators have given the green light for Japanese interests to acquire stakes in rare earths explorer Lynas Corporation Ltd (ASX:LYC).
The Foreign Investment Review Board has issued a no objection letter for a special purpose company owned by Sojitz Corporation and the Japan Oil, Gas and Metals National Corporation to invest $325 million into Lynas through a loan and the purchase of $25 million in new shares.
As part of the off-take, distribution and financing arrangements Lynas will allocate a minimum of 8,500 tonnes per year of rare earth to the Japanese market for ten years.
Lynas says the remaining conditions for the deal to proceed are expected to be satisfied in April 2011.
In the first six months of its 2011 financial year Lynas Corporation recorded a net loss of $20.5 million.
