After Lynas (LYC AU) tapped the market last year for $825mn, it was widely expected it had Viridis Mining and Minerals (VMM AU) or Meteoric Resources (MEI AU) in mind.
As discussed in Meteoric Resources (MEI AU) Taps Market, As Washington Also Targets Brazil’s Rare Earths, Meteoric, one of a handful of Aussie-listed-plays developing Brazilian rare-earths, also tapped the market.
Now Lynas has made an all-scrip offer for Meteoric. Unanimous board support, plus largest shareholder. Lynas will also extend an interim loan facility. Possible implementation in March 2027. Clean deal.
The Trade:
Trading tight (0.5% gross spread as I type).
If you can take down borrow cheaply on Lynas, look to short it against Meteoric