west australian 03.10.09, page-3

Quote:
"The 45c-a-share price tag on the equity raising Lynas announced this week might have looked cheap compared with its pre-trading halt share price of 90c, but it was a premium to the 36c a share CNMC had planned to pay for control. The way the deal has been structured, through a combined rights issue and institutional placements, has also kept Lynas' balance sheet relatively open.

Once the cash is in the bank, construction, including an on-site concertration plant at Mt. Weld and a processing plant in Malaysia, should take about 12 months.

Phase one, targeting 10,500 tonnes a year, is intended to be fully funded through the $450 million.

Lynas has yet to commit to a time frame for phase two, or say how it plans to fund the expansion, but Mr. Curtis has suggested work could begin as soon as phase 1 is set up and running.

The company retained, he said , the balance sheet flexibility to look at various options."

There is more written but I'm getting tired and IMO nothing that we don't already know. As I've said before I will happily take my rights but apart from long term worries about the billion plus shares and high P/E ratios I also have short term worries about institutions selling off to make quick profits. Just look what has happened to other cheap institutional placements eg. NKP and DRX. Correct me if I'm wrong but as far as I know there is no clause to prevent them selling as soon as these shares are issued.