PERTH (miningweekly.com) – Rare earth miner Lynas has reaffirmed its commitment with Japan Australia Rare Earths (JARE) to jointly develop rare earth opportunities, reaching a $9 million deal with the investor.

JARE is a special purpose company established by Japan Oil, Gas and Metals National Corporation (Jogmec) and Sojitz Corporation.

Lynas and JARE are party to a senior long-term loan facility of $141 million, with a maturity date of the end of June 2030.

Under a signed engagement agreement with Lynas, JARE will provide a $9 million contribution to the exploration program at Mt Weld on the fresh carbonatite exploration target under the current mine life design. the Mt Weld mine and ore stockpile.

JARE’s contribution will be made through a subscription for $9 million of Lynas common stock at a subscription price which will be the greater of the five-day volume-weighted average price during the period immediately following the agreement or the last traded price immediately prior to the agreement to be entered into.

JARE will also provide technical support to the exploration program through the participation of world renowned geologists and other technical professionals from Jogmec, and has agreed to remove capital management restrictions in the loan facility.

“The relationship between Lynas and the Japanese rare earth industry is important to the global rare earth industry. We are delighted to have JARE’s continued support, including for our exciting exploration program at Mt Weld,” said CEO and Managing Director of Lynas. Amanda Lacaze said.

“The removal of capital management restrictions in the loan facility is an important step in the maturing relationship between Lynas and JARE and will ensure that all options can be considered within our capital management strategy.”