Reuters reported that Australia's Lynas Corporation sought a trading halt ahead of sealing a funding deal with analysts estimating it would want up to AUD 100 million to tide it over until its rare earths plant is cleared to open in Malaysia.

The company said that the trading halt is requested pending an announcement concerning a funding transaction for the company.

The halt comes a week ahead of a meeting of Malaysia's Atomic Energy Licensing Board to decide whether to approve a temporary license for Lynas to commission a rare earths processing plant in central Malaysia.

The licensing board's recommendation will then be submitted to Prime Minister Mr Najib Razak's cabinet for final approval of a pre operating licence for the USD 200 million plants which has been delayed due to environmental protests.

Analysts have warned that even if the licensing board recommends commissioning of the plant, the government may delay issuing the license until after national elections, widely expected this year. Lining up funding would ease worries about a further delay to the start of cash flow from the plant. The company probably needed only AUD 100 million at most.

Mr Andrew Harrington an analyst at Patersons Securities said that "I don't think it's a lot. It's just a matter of bridging the construction cash out and keeping the lights on until they get revenue from turning the plant on. They've got enough cash to keep them going for several months."

(Sourced from Reuters)