Shares of Molycorp Inc. plunged after the rare earth minerals company priced separate public offerings of stock and debt totaling at least $480 million, which is higher than initially estimated.
Molycorp just needed to raise a shitload of cash to pay down debt which tells us the yanks have been lying all along about their deposit.
Its real tough for rare earths right now but l can honestly not see Molycorp making it, this will have a massive impact on the market and Peak will be their to benefit.
Putting the capital raising issues to one side, Peak have delivered on everything they have set out to do which no rare earth companies ever do. They have managed to almost complete met work in 8 months, yes 8 months that is unheard of because Ngualla is so old most of the liberation is done for us.
While l don't expect any big price movements while the dilution from the raising washes through, l do see a massive future for PEK once the market sees a saleable product from us.
Its a tough game rare earths a long process and l will probably never invest in rare earths again as they are to complicated and hard to understand but l know Ngualla is a special project and one day will get the credit it deserves.
PEK Price at posting:
15.2¢ Sentiment: Hold Disclosure: Held
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