Key facts
- Lynas Rare Earths will acquire Meteoric Resources in an all-share deal valued at approximately $968 million.
- Meteoric's Caldeira project in Brazil is described as the largest known ionic clay rare earth oxide mineral resource outside of China.
- The Caldeira project contains both light and heavy rare earth elements.
- The acquisition is expected to increase Lynas's reported measured and indicated total rare earth oxide mineral resources by about 79%.
- Meteoric shareholders will receive 0.0207 Lynas shares for each Meteoric share held.
- The offer represents an implied value of $0.286 per Meteoric share, a 68.4% premium to its last closing price.
Australian rare earth miner Lynas Rare Earths announced on Thursday plans to acquire Meteoric Resources, an Australian-listed developer of a rare earth deposit in Brazil, in an all-share deal valued at approximately $968 million. The move is part of Lynas's strategy to diversify its resource base and expand its global operations as an alternative to China's dominance in the rare earths supply chain.
The Caldeira project in Brazil's Minas Gerais state is described as the largest known ionic clay rare earth oxide mineral resource outside of China, with a definitive feasibility study already completed. It contains both light and heavy rare earth elements, which would complement Lynas's existing hard-rock Mt Weld deposit in Western Australia.
Under the proposed transaction, Meteoric shareholders will receive 0.0207 Lynas shares for each Meteoric share held. This exchange ratio implies an equity value of about $968 million, representing a 68.4% premium to Meteoric's last closing price based on a 60-day volume-weighted average price. Lynas stated the acquisition could increase its reported measured and indicated total rare earth oxide mineral resources by about 79% and ore reserves by about 26% on a pro forma basis.
Lynas has also agreed to provide Meteoric with an interim funding facility of up to $110 million to support the continued development of the Caldeira project and transaction costs. The acquisition remains subject to regulatory approvals, independent expert conclusions, and approval by Meteoric shareholders, who are expected to vote in January 2027. Implementation is targeted for March 2027.