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Molycorp (MCP) announces that it will receive an investment of $390M from Chile's Molymet in...

Molycorp (MCP) announces that it will receive an investment of $390M from Chile's Molymet in exchange for 12.5M shares of its common stock. The share price on the deal reflects a 20-day weighted average and 10% premium. Shares +6.2% premarket.
Comments (2)
  • 508229
    , contributor
    Comments (6) | Send Message
     
    I know you guys love MCP all to pieces, but Lynas Corp. (+16% in Germany) just got the okay this am (after the ASX closed) on the license to start operating their processing plant in Malaysia. That's for a real plant that's actually already built to process ore from a mine that's actually being mined.
    1 Feb 2012, 09:48 AM Reply Like
  • Garfield23
    , contributor
    Comments (162) | Send Message
     
    My thoughts on Molymet share purchase.

     

    They see big value in MCP. Wouldn’t put up this size of investment if they don’t 100% believe in the deal, industry and MCP position.

     

    From MCP’s view, I foresee this as a deal for strategic purposes, and would expect MCP making a major announcement in next couple weeks. Maybe use the cash for another a j/v investment in vertical supply chain with a GE or HONEYWELL, etc.

     

    These are my thoughts on this…. All in all, I feel positive about this…
    1 Feb 2012, 11:31 AM Reply Like
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