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Lynas takes corporate name

A NAME change by Lynas Gold NL is part of a careful corporate plan to boost its non-gold image on the eve of a new resource venture.

The company will seek shareholder approval later this month to change its name and company status to Lynas Corporation Limited to reflect its broader focus including its investment in the Mt Weld rare earths project in joint venture with Ashton Mining Limited.

Lynas managing director Les Emery said the name change is designed to reposition Lynas in the market, while the change of status would give it the corporate flexibility to expand its non-gold business and consider other growth opportunities.

“Lynas is aiming to develop the Mt Weld project as a quality supplier of rare earth products to the world’s high-technology industries,” Mr Emery said.

“At the same time, we remain a low-cost gold producer and constantly review other development and acquisition opportunities.”

A bankable feasibility study, being undertaken at Mt Weld, and funded by Lynas, is due for completion in November 2000.

The project has the capacity to supply 5 per cent to 10 per cent of the world market for rare earth products through the establishment of a long-life, value-added export industry.

The international market is worth around US$650 million per annum, and is growing rapidly due to increased demand and higher value products.

Total capital expenditure is estimated at $70 million to $80 million.

Lynas has the right to earn an initial 35 per cent interest in the Mt Weld project by sole funding the feasibility to a maximum of $3.2 million. Once a development decision is made, it can increase its equity to 60 per cent by purchasing an additional 25 per cent from Ashton.

In turn, Ashton can elect to vend its remaining 40 per cent interest into Lynas in exchange for shares in the company.

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