Lynas Corporation Limited (ASX:LYC) has secured a new funding facility and exposed a cost blowout and delays at its Malaysian refinery, after the market closed yesterday.
The rare earths developer says it will raise $US225 million through a convertible bonds issue which will provide sufficient funds to complete construction and commissioning of Phase 1 of the Lynas Advanced Materials Plant (LAMP).
The company has also revealed a $40 million cost blow out at the project due to construction delays arising from extra engineering requirements and the recent monsoon season.
Subject to securing the necessary approvals Lynas expects first feed to kiln and first production will be delayed from the first quarter to the second quarter of this year.
Shares in Lynas Corporation last traded at $1.28, before entering into a trading halt.
Lynas’ December quarter report will be released at the end of this month.
In the 2011 financial year Lynas Corporation booked a net loss of $59 million.
