Lynas shares drop 6 percent after capital raising for Malaysia plant

SYDNEY Sun Nov 11, 2012 6:19pm EST

SYDNEY (Reuters) - Shares in Australia's Lynas Corp (LYC.AX) dropped 6.2 percent on Monday after the company said it raised A$150 million ($156 million) to help fund the start-up of its controversial Malaysian rare earths plant through a placement to institutional investors.

A further A$50 million will be sought from retail investors.

Shares in Lynas surged 12 percent on Thursday after a court lifted a suspension on its licence to operate the processing plant. The shares were suspended on Friday after it announced the capital raising.

The stock was down 5 percent at A$0.76 at 1110 GMT.

($1 = 0.9635 Australian dollars)

(Reporting by Lincoln Feast; Editing by Leslie Adler)