Australia’s Lynas Rare Earths Ltd. will acquire Meteoric Resources Ltd. in an all-share deal valued at about A$968 million ($672 million). The acquisition gives Lynas access to a new rare earths deposit in Brazil, supporting its strategy to diversify resources beyond Australia and Malaysia. Lynas, the largest rare earths producer outside China, is backed by Gina Rinehart.
The company will offer 0.0207 shares for each Meteoric share. Meteoric, based in Perth, is developing the Caldeira mine in Brazil. Lynas expects development costs to exceed $500 million and plans further studies on processing opportunities.
Chairman John Humphrey said expanding into Brazil will help Lynas maintain its global supply chain leadership and meet rising demand for rare earth materials, used in magnets for military, consumer, and technology applications.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing