Molycorp raises $180 million for project through stock sale

Molycorp, which is reviving a rare earths mine in Mountain Pass, Calif., raised another $180 million to fund its construction program through the sale of 1.8 million preferred shares.

Terms call for paying a 5.5 percent dividend on the shares. The owners can convert them into common shares at the time of their choice at prices that vary with the market. All the preferred shares will convert automatically to common by March 1, 2014.

Molycorp, based in Greenwood Village, Colo., has an option to sell another 270,000 preferred shares, which would bring in another $27 million. The company is reviving the Mountain Pass mine, roughly 60 miles from Las Vegas, and will use the proceeds to help pay for the project.

Also, certain large shareholders
sold 13.5 million shares at $50 each, a total of $675 million, and lowered their stake from 47 percent to 36 percent. None of this money will go to the company.