There seems to be a pretty negative response on here to this...

There seems to be a pretty negative response on here to this announcment. As has been pointed out who would lend $30m to the company if they thought they wouldn't get the $95m. Without the $95m there is no company to lend to. In the most recent announcments about the drawdown, Lynas have referred to the conditions precedent to the release of the funds from escrow. The final offtake agreement was one. One of the others was;

"Demonstration of full funding of the Rare Earth’s project"

It may be that they needed to have a contigency funding deal in place to satisfy this clause. The two funding arrangements provide enough money to take the company to production but perhaps bond holders wanted to see a bit extra. That would explain the 60 month term and the following statement;

“The execution of this facility with YA Global provides an additional back-up source of working capital finance for the Company, if required.”

This may be one of the final conditions referred to in the last update. I don't know one way or the other but It seems highly unlikely they would put in place a facility for $30m if they knew the $95 was off the table. That just makes no sense at all.

I appreciate you blokes are all in bed now but you can read this in the morning with your coffee :-)