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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (72300)	12/10/2010 6:50:16 PM
From: LoneClone	Read Replies (1) \| Respond to of 194482

Sumitomo to take $100 mln stake in Molycorp sg.finance.yahoo.com On Saturday 11 December 2010, 7:15 BOSTON (Reuters) - Japanese trading house Sumitomo Corp agreed to invest $130 million in U.S. rare-earth producer Molycorp Inc(NYSE:MCP) in exchange for a guaranteed seven-year supply of the minerals, which are used in products ranging from wind turbines to MP3 players. Molycorp said Sumitomo agreed to buy $100 million of its common stock and provide $30 million in debt financing, to help fund its redevelopment of its Mountain Pass, California, mine and processing facility. The news sent Molycorp shares up 3 percent to $31.70 in premarket trading. The company has a $2.55 billion market capitalization. Molycorp, which went public in July at $14 per share, has seen its shares more than double in value since China slashed its export quotas on rare-earth elements. "This financing will help to ensure that Molycorp will deploy its entire mine-to-magnets manufacturing supply chain on time and on budget," said Mark Smith, Molycorp chief executive officer. The company expects to spend about $500 million updating its mine, which was closed in 2002, at a time when rare earth prices were falling. Japanese companies have been moving in recent months to secure reliable supplies of rare earths. Last month, Sojitz Corp reached a procurement deal with Australian miner Lynas Corp. (Reporting by Scott Malone, editing by Gerald E. McCormick, Dave Zimmerman)