corporate regulator eyes lynas sale to forge, page-2

ASIC concerns delay Lynas deal Philip Wen
April 25, 2011
.LYNAS CORPORATION'S contentious sale of a rich rare earths and metals deposit to a related party, Forge Resources, has attracted the corporate regulator's attention, and a key shareholder vote will be delayed because of concerns over disclosure.

Having boasted of "our next project" with "over $50 billion metal content" as recently as 2007, Lynas has now decided its Crown polymetallic deposit is "non-core" and has asked its shareholders to approve its sale to Forge for $20.7 million.

The executive chairman of Lynas, Nicholas Curtis, is also a director and 15 per cent shareholder of Forge. He stands to vest 24 million performance shares in Forge - worth close to $30 million at current share prices - if the deal succeeds. This will boost his stake in Forge, and ownership of the Crown ore body, to close to 40 per cent. He owns less than 1 per cent of Lynas.

Read more: http://www.smh.com.au/business/asic-concerns-delay-lynas-deal-20110424-1dsys.html#ixzz1KTyxYQ5

What he doesn't say is that the information was brought to him from members of the Lynas vote no action group.