Lynas Corporation (LYC) is involved in the exploration and development of rare earth minerals, and has been one of the market’s hot stocks in recent months.
LYC owns the richest deposit of Rare Earths in the world at Mt Weld (Western Australia), 35km south of Laverton in Western Australia.
Yesterday, LYC signed a strategic alliance with Japan-based Sojitz Corporation.
The agreement relates to securing additional rare earths for the Japanese market by accelerating the expansion of LYC’s rare earths project.
LYC will now seek US$250 million to cover the cost of accelerating the expansion in return for allocating 8,000 – 9,000 tonnes of rare earths per annum to Japan, for the next ten years.
LYC jumped over 10% on the news, making it one of the top performers in the Australian share market.
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