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Responding to media speculation Lynas Corporation Ltd (ASX:LYC) has confirmed that it may sell its Crown polymetallic deposit at Mount Weld in Western Australia to Forge Resources Ltd (ASX:FRG).
The rare earths producer describes Mt Weld as the richest known deposit of rare earths in the world.
Media reports have tipped the Crown deposit sale could generate $29 million.
Lynas says that discussions relating to Crown are incomplete and that the board of Lynas is not yet in a position to make a decision.
Energy and resources explorer Forge Resources yesterday entered into a trading halt, advising that it is in the process of completing the negotiations associated with the purchase of a material project and associated capital raising.
Nicholas Curtis holds the position of chairman for both Lynas and Forge Resources.
In the 2010 financial year Lynas Corporation reported a net loss of $43 million.
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