One of the largest publicly traded rare earth companies in the world has just raised nearly half a billion dollars. But, why?
What’s happening:
- Lynas Rare Earths (ASX: LYC) has successfully raised $489M USD in a new equity financing round
Why it matters:
- This is the single largest capital raise Lynas Rare Earths has ever done
Going deeper:
- Lynas Rare Earths has publicly stated that they plan to use the new growth capital to expand capacity at their Mt Weld mine located in Australia to be able to produce more neodymium and praseodymium, as well as for upgrading their Malaysian rare earth processing plant
- Lynas Rare Earths is also aiming to begin developing a new rare earth processing facility in the United States of America to be able to supply rare earth elements to companies and government agencies based in North America
The intrigue:
- Australia has been seeing a major uptick in capital flowing into rare earth projects lately, including Energy Fuels (NYSE: UUUU) just recently being granted final regulatory approval from the government of Victoria, Australia to construct and operate the Donald rare earth mine through a partnership with Astron Corporation (ASX: ATR)
