Frontier Rare Earths Plans IPO in Toronto to Develop South Africa Deposit
Frontier Rare Earths Ltd. plans an initial public offering in Canada to develop a South African deposit of rare metals used in car batteries and computers.
Frontier, based in Luxembourg, will sell units consisting of one share and half a warrant in the IPO, the company said today in a statement. The company plans to list its shares on the Toronto Stock Exchange.
Frontier aims to become one of the leading producers of rare-earth metals outside of China and one of the first new producers of the elements after Lynas Corp. and Molycorp Inc., according to its regulatory filing. Frontier is developing the Zandkopsdrift deposit in South Africa’s Northern Cape Province, the company said in a Sept. 30 filing.
Rare earths are a group of chemically similar metallic elements, including lanthanum, neodymium and cerium. The elements are used in radar, high-powered magnets, mini hard- drives in computers, catalytic converters for vehicles and electric-car batteries.
CIBC World Markets is leading a group of banks including Canaccord Genuity, Cormark Securities Inc., Byron Securities Ltd. and National Bank Financial for the sale. Frontier didn’t indicate how much it plans to raise.
Chief Executive Officer James Kenny in Luxembourg wasn’t immediately available for comment.
To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net
To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; or Alec McCabe at amccabe@bloomberg.net
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