News: Lynas deal with Forge endorsed by expert

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Lynas Corporation Ltd (ASX:LYC) has announced that its proposed deal with Forge Resources Ltd (ASX:FRG) has been endorsed by an independent expert.

Earlier this month the rare earths explorer inked a deal with Forge to sublease designated areas within Lynas’ Mt Weld mining leases in Western Australia.

An independent expert appointed by Lynas has now concluded that the proposed transaction is fair and reasonable to the shareholders of Lynas, in the absence of a superior proposal.

Under the deal Forge will pay Lynas $20.7 million cash, 7 million options to acquire Forge shares with a five year expiry, in addition to the right to buy rare earths taken from the subleased deposits and royalties.

Lynas shareholders will be sent the details of the proposed transaction in April and will be asked to approve the deal on 18 May, 2011.

In the first six months of its 2011 financial year Lynas Corporation recorded a net loss of $20.5 million.