Lynas Rare Earths Ltd. has agreed to acquire 100 per cent of Meteoric Resources via a Court-approved scheme of arrangement, in a deal valuing the target company at approximately AU$968 million.
The transaction will bring Meteoric’s flagship Caldeira rare earth project in Minas Gerais, Brazil, into Lynas’ portfolio. Caldeira is recognised as the largest known ionic clay JORC rare earth oxide mineral resource outside of China.
Under the terms of the scheme, Meteoric shareholders will receive 0.0207 new Lynas shares for each Meteoric share held. This implies an offer price of 28.6 cents per share, representing a 68.4 per cent premium to Meteoric’s last closing price of 17 cents per share.
Upon completion, Meteoric shareholders will hold approximately 5.9 per cent of the expanded Lynas entity.
The acquisition aligns with Lynas’ Towards 2030 growth pillar to add resource and scale, expanding its operations from a single primary resource base at Mt Weld in Western Australia to two tier-one assets.
The deal will boost Lynas’ Measured and Indicated Total Rare Earth Oxides (TREO) Mineral Resources by roughly 79 per cent.
“Expanding our operations into a new country will help Lynas maintain its leading position in the global rare earths supply chain and meet increased customer demand for rare earth materials,” said Lynas Board Chair Professor John Humphrey
Meteoric’s board has unanimously recommended that shareholders vote in favour of the deal, in the absence of a superior proposal and subject to an independent expert’s report.
Major shareholder Tolga Kumova, holding roughly 6.7 per cent of issued shares, has also signalled his intent to vote in favour under the same conditions.
“Lynas brings technical expertise, global credibility and balance sheet strength to fast-track the development of Caldeira,” said Meteoric Executive Chair Andrew Tunks.
To support ongoing operations during the transition, Lynas is providing Meteoric with an interim unsecured funding facility of up to AU$110 million. Capital expenditure to develop Caldeira is estimated to exceed US$500 million.
The transaction remains subject to regulatory approvals, including clearance from Brazil’s National Council for the Industrialisation of Critical and Strategic Minerals, as well as Meteoric shareholder approval.
The scheme meeting is slated for January 2027, with implementation targeted for March 2027.
