Lynas to Acquire Meteoric Resources in A$968 Million All-Share Deal, Adding Brazil’s Caldeira Rare Earths Project

Lynas Rare Earths Limited (OTC: LYSDY), the Australian rare earths producer that operates the Mt Weld mine in Western Australia and processing facilities in Kalgoorlie and Malaysia, announced on October 1, 2026 that it has agreed to acquire Meteoric Resources in an all-share deal valued at A$968 million. The transaction would give Lynas the Caldeira ionic clay rare earths project in Minas Gerais, Brazil, and extend its operations into a third country.

Deal Terms

Under a binding scheme implementation deed, Meteoric shareholders would receive 0.0207 Lynas shares for each Meteoric share they hold. The ratio implies a value of A$0.286 per Meteoric share, a 68.4% premium to Meteoric’s last closing price. On completion, Meteoric shareholders would own approximately 5.9% of the combined company on a fully diluted basis.

The Meteoric board unanimously recommends the scheme, subject to no superior proposal emerging and an independent expert concluding it is in shareholders’ best interests. Meteoric’s directors, who hold about 2.6% of its shares, intend to vote in favor, and Tolga Kumova and his associates, who hold about 6.7%, have also committed their support. Lynas will provide Meteoric with an unsecured interim loan facility of up to A$110 million, with A$35 million available immediately.

What Caldeira Adds

Caldeira holds 802,000 tonnes of neodymium-praseodymium (NdPr) oxide and 41,000 tonnes of dysprosium-terbium (DyTb) oxide in its JORC Mineral Resource, which the companies describe as the largest known ionic clay rare earths resource outside China. According to the acquisition presentation, the deal would increase Lynas’ Measured and Indicated rare earths Mineral Resources by about 79% and its Ore Reserves by about 26% on a pro forma basis.

A definitive feasibility study published in July 2026 outlines a 23-year mine life supported by Ore Reserves, with capital costs of about US$498 million. Over the life of the mine, the study targets average annual output of 12,500 tonnes of total rare earth oxides, including 3,862 tonnes of NdPr and 127 tonnes of DyTb.

“Lynas is very pleased with the potential to bring together the Caldeira deposit which is the largest known ionic clay rare earth Mineral Resource outside China reported in accordance with the JORC Code, and Lynas’ high grade Mt Weld deposit and leading rare earth operations,” said Lynas Board Chair Prof. John Humphrey. “This will deliver on our Towards 2030 growth objective of adding resource and scale.”

Funding and Timeline

Because the deal is paid entirely in shares, Lynas keeps its cash available for development and other growth projects. The company held approximately A$1.2 billion in cash and short-term deposits as of June 30, 2026, and generated about A$320 million of net operating cash inflows in fiscal 2026.

Meteoric expects to send its scheme booklet to shareholders in December 2026 and hold the scheme meeting in January 2027, with implementation targeted for March 2027. The deal still requires shareholder and court approval, along with Brazilian regulatory clearance and other customary conditions.

“I am very proud that the work of our team has attracted a partner of Lynas Rare Earths’ calibre to Caldeira,” said Meteoric Executive Chair Dr. Andrew Tunks.

Strategic Investment Summary

• All-Share Acquisition: Lynas Rare Earths Limited (OTC: LYSDY) agreed to acquire Meteoric Resources for 0.0207 Lynas shares per Meteoric share, an implied equity value of A$968 million.
• Offer Premium: The implied price of A$0.286 per share is a 68.4% premium to Meteoric’s last close, and Meteoric shareholders would own about 5.9% of the combined company.
• Resource Growth: Caldeira holds 802,000 tonnes of NdPr oxide and 41,000 tonnes of DyTb oxide, lifting Lynas’ Measured and Indicated Resources by about 79% and Ore Reserves by about 26%.
• Project Economics: The July 2026 feasibility study outlines a 23-year mine life, about US$498 million of capital costs and average annual output of 3,862 tonnes of NdPr.
• Balance Sheet: The all-share structure preserves Lynas’ approximately A$1.2 billion in cash and short-term deposits as of June 30, 2026.
• Timeline: Implementation is targeted for March 2027, subject to shareholder, court and Brazilian regulatory approvals.

Find out more about the latest corporate developments and financial reports at the Lynas Rare Earths investor portal.