Molycorp raises $390 million in stock sale to Chilean company
Molycorp has raised $390 million by selling 12.5 million shares to the Chilean mining company Molibdenos y Metales S.A.
This will give the company, known as Molymet, a 12.9 percent stake plus one seat on Molycorp's board of directors. Moymet paid $31.20 share, the average price for the 20 trading days before
Jan. 30 plus a 10 percent premium.
Molycorp has restarted rare-earth extraction at the open pit mine in Mountain Pass, Calif., 15 miles south of Primm, aiming to crack Chinese dominance in the market. Rare earths, often used in tiny quantities on individual products, make possible lighter and stronger magnets that are critical in products ranging from smartphones to smart bombs to windmill turbines.
Molymet processes molybdenum and rhenium, at plants in five countries.
Molycorp, which has been a highly volatile stock, sold the new shares at much closer to its 52-week low of $23.05 than the 52-week high of $79.16. Spokesman Jim Sims said the company wanted to bolster its balance sheet, allowing more flexibility to undertake acquisitions within the rare-earth industry.
Contact reporter Tim O'Reiley at toreiley@reviewjournal.com or 702-387-5290.
