Molycorp aims to conduct $60 million placement of common stock

Molibdenos invests $35 million; Resource Capital puts in $25 million

By Devika Patel

Knoxville, Tenn., Aug. 16 - Molycorp, Inc. negotiated a $60 million private placement of stock with Molibdenos y Metales SA and Resource Capital Fund V LP on Aug. 16, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Molibdenos will buy $35 million of common stock, and Resource Capital will buy $25 million of the company's common shares.

In addition, the company said it plans to offer $300 million of convertible senior notes due 2017 and $150 million of its common stock in a public offering. There is a $45 million greenshoe for the convertibles and a $22.5 million greenshoe for the stock. Morgan Stanley & Co. LLC is the underwriter.

Proceeds will be used for operating expenses, working capital and capital expenditures.

Greenwood Village, Colo.-based Molycorp is a producer of rare earth oxides.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.