molycorp all cashed up., page-65

February 1, 2012 8:28 AM EST

Molycorp, Inc. (NYSE: MCP) announced today 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. The price of the Molycorp shares to be purchased were valued based on the 20-day volume weighted average share price as of the close of trading on January 30, 2012 plus a 10.0% premium. 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.