a shared value initiative proposl 4 lynas & my

A shared value initiative proposal for Lynas and Malaysia:

Since 400 Malaysian jobs hang in the balance while the TOL license is undergoing review for the nineth month, I propose to solve the bridge funding by "sharing" shares with the Malaysian people in an incremental fashion until this process is finally resolved:

As in preceding posts, it appears that if TOL is not issued, there is only sufficient funding to continue until sometime during Q1 2013.

Since about 8-10 million per month will be needed to continue LAMP operations beyond that point in time, unless TOL is granted within this quarter, workers in Malaysia may need to be furloughed to preserve capital around the end of this year.

I would suggest that, let the Malaysian people/Malaysian government take a greater stake in their own people's job security, as well as a stake in profits, since Najib and the parliament are just as confident as Lynas management that the LAMP is safe and TOL will be issued.

How about an agreement that, starting in November, 2012, Lynas issue roughly 17 million shares on the last date of each calendar month to the Malaysian government for a share price equal to current market price volume weighted average for that 30 days. Good for a maximum term of 10 months or about 10 percent dilution.

The first dilution would be approximately 1 percent of the current market cap of 1.7 billion shares. Looked at on those terms, it does not seem like a significant dilution and would provide Lynas a temporary source of funding. On top of that it would make the Malaysian government a stakeholder more interested in seeing Lynas succeed.

As a further carrot, if the TOL is issued "X" months before the end of the 10-month period, Lynas would grant a bonus of 1 million FREE shares for each month the TOL is issued ahead of expectations.