Lynas denies deposits have attracted bids

Company News

Responding to media speculation, Lynas Corporation Ltd (ASX:LYC) has denied that it has been contacted by any potential buyers for its Crown and Swan deposits.

Yesterday Fairfax Media reported that two Lynas shareholders are preparing to bid for the two deposits just one week after Lynas terminated its proposed sale of the deposits to Forge Resources Ltd (ASX:FRG).

However, Lynas says neither its directors or management have been contacted by any bidder and the board doesn’t believe it is the appropriate time to be focussing on the deposits.

Rather, the rare earths producer is hoping to focus on its Mount Weld Concentration Plant in Malaysia, announcing yesterday that the first feed of ore occurred over the weekend.

Lynas also yesterday confirmed that an independent review into health safety and environmental aspects of the plant is expected to be completed by the end of June.

The news comes amid reports that the plant could face delays, with Malaysian locals and politicians voicing their concerns over possible radiation pollution.    

Lynas Corporation booked an interim net loss of $20.5 million in the six months to the end of December 2010.