Molycorp Up On Sumitom Equity, Debt Agreement

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Molycorp, Inc.
MCP
is up almost 3% in pre-market trading after the rare Earth miner and Japanese investment firm Sumitomo Corporation
announced
a $130 million equity and debt agreement this morning. Sumitomo will buy $100 million of Molycorp shares and provide Molycorp $30 million in debt financing at a low interest rate. “We are very pleased to have entered into the Memorandum of Understanding with Sumitomo,” said Mark Smith, Molycorp's CEO. "This financing will help to ensure that Molycorp will deploy its entire mine-to-magnets manufacturing supply chain on time and on budget." “The Memorandum of Understanding underscores our high level of confidence in Molycorp's ability to execute its ‘mine-to-magnets' business strategy and to provide competitive and stable sources of high-quality rare earth products for many years to come,” said Rei Ito, General Manager of Sumitomo's Inorganic Chemicals & Industrial Minerals Department. Shares of Molycorp are up 89 cents to $31.68, a gain of 2.9%.
Posted In: NewsEventsMovers
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