Molycorp to Receive $390 Million Strategic Investment From Molymet
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Molycorp has reported that Molibdenos y Metales (Molymet), the world’s largest processor of the strategic metals molybdenum and rhenium, has agreed to invest approximately $390 million in Molycorp in exchange for 12.5 million shares of Molycorp common stock. Molycorp has agreed to appoint to its board of directors upon the closing of the proposed investment a nominee to be designated by Molymet.
Proceeds from the Molymet investment will be retained by Molycorp for general corporate purposes and will bolster Molycorp’s strategic flexibility. The funds are expected to finance Molycorp’s future growth and will help the company continue to pursue its vertical supply chain integration business model. Closing of the transaction is subject to the satisfaction of customary closing conditions, including the receipt of certain governmental regulatory approvals.
Headquartered in Santiago, Chile, Molymet has a market capitalization of $1.8 billion USD and is the world’s leading processor of molybdenum and rhenium. Molymet has plants in Chile, Mexico, Belgium, Germany, and China, and commercial offices in England, China, the U.S., Brazil, and Chile.
John Graell, Molymet’s executive chairman and CEO, is expected to serve on Molycorp’s Board. He has more than thirty years of experience in the metals industry, and is a highly respected industry leader with a long history of business success.
“We are very pleased with Molymet’s decision to make this significant strategic investment in Molycorp, and we look forward to having John Graell, and his wealth of experience and insight, join our Board when nominated by Molymet. Molymet’s investment will help us pursue the growth elements of our business strategy and positions us to capitalize on opportunities that present themselves in the future,” said Mark A. Smith, Molycorp president and chief executive officer.
“We are making this investment in Molycorp because we are very bullish on the upside potential of the company, as well as the highly synergistic technologies and market positioning of our respective companies. Molycorp’s vision for growth and global supply chain integration is highly attractive to us, and I look forward to working with the company to help it achieve its long-term goals,” said Graell.
About Molycorp
With offices in the U.S., Europe, and Japan, Molycorp is the only U.S based company that is fully integrated across the rare earth mine-to-magnets supply chain. In addition to its current production of rare earth oxides at its flagship rare earth mine and processing facility at Mountain Pass, California, the Company produces rare earth metals, rare earth alloys (such as neodymium-iron-boron and samarium-cobalt alloys) and rare metals such as niobium and tantalum. The rare earths and rare metals Molycorp produces are critical inputs in existing and emerging applications including: clean energy technologies, such as hybrid and electric vehicles and wind power turbines; multiple high-tech uses, including fiber optics, lasers and hard disk drives; numerous defense applications, such as guidance and control systems and global positioning systems; advanced water treatment technology for use in industrial, military and outdoor recreation applications; and other technologies.
To stop by Molycorp’s website, CLICK HERE
About Molymet
With more than 70 years of experience in the ferroalloy industry, Molymet’s primary business is processing molybdenum concentrates, or molybdenite, for the obtainment and commercialization of several molybdenum final products and by-products, such as molybdenum oxide, ferromolybdenum, and rhenium. The world leader in molybdenum and rhenium processing, Molymet currently has plants in five countries: Chile, Mexico, Belgium, Germany and China, with commercial offices in England, China, the United States, Brazil and Chile.
To stop by Molymet’s website, CLICK HERE
