Lynas Rare Earths (ASX:LYC) entered into binding agreements with LS Cable & System unit LS Eco Energy for the cross-subscription of convertible instruments to the value of around AU$29 million each, according to a Monday Australian bourse filing.
The firms are working towards a definitive agreement for a long-term metal processing arrangement covering the use of Lynas' rare earth products at LS Eco Energy's proposed metal-making facility in Vietnam.
The convertible instruments each have zero interest rate, a maturity date of five years, and are convertible into ordinary shares at the election of the holder from three years after the date of issuance at a conversion price referable to current trading prices.