Molymet to buy stake in Molycorp

GREENWOOD VILLAGE, US: Molycorp Inc announced that Molibdenos y Metales (Molymet) SA, 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. The price of the Molycorp shares to be purchased was valued based on the 20 day volume weight average share price as of the close of trading on 30 January 2012, plus a 10 per cent premium. Closing of the transaction is subject to the satisfaction of customary closing conditions, including the receipt of certain governmental regulatory approvals.

“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 work with the company to help it achieve its long-term goals,” said John Graell, Executive Chairman and CEO, Molymet.