Molymet to invest $390 million in US based rare earth producer Molycorp
March 20, 2012
Molycorp, Inc. has announced that Molibdenos y Metales S.A. (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 also agreed to appoint to its Board of Directors, upon the closing of the proposed investment, a nominee to be designated by Molymet.
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 UK, China, the USA, Brazil, and Chile.
John Graell, Molymet’s Executive Chairman and Chief Executive Officer, is expected to serve on Molycorp’s Board. He has more than 30 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,” stated Mark A. Smith, Molycorp President and Chief Executive Officer. “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.”
“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,” said Graell. “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.”
Edited by: Paul Whittaker, Editor ipmd.net, [email protected]
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