EDITOR: | October 15th, 2013 | 4 Comments

Molycorp Announces Proposed Offering of Common Stock

| October 15, 2013 | 4 Comments

October 15, 2013 (Source: Molycorp Inc.) — Molycorp, Inc. (NYSE: MCP) (“Molycorp” or the “Company”) today announced that it intends to offer and sell, subject to market and other conditions, up to $200,000,000 of its common stock (the “Common Stock”) (or up to an aggregate of $230,000,000 of Common Stock if the underwriters of such offering exercise their option to purchase additional shares of Common Stock in full) (the “Offering”) in a registered public offering.

The Company intends to use the net proceeds received from the Offering to fund current capital needs for capital expenditures and other cash requirements, including, without limitation, capital expenditures at its Mountain Pass, California facility.

Morgan Stanley & Co. LLC, Goldman, Sachs & Co. and J.P. Morgan Securities LLC will act as joint bookrunners for the Offering.

The Offering may be made only by means of a prospectus supplement and an accompanying prospectus.  When available, copies of the preliminary prospectus supplement and the accompanying prospectus relating to the Offering may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, Second Floor, New York, NY 10014,  from Goldman, Sachs & Co., Attention: Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, or email: prospectus-ny@ny.email.gs.com or from J.P. Morgan Securities LLC c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Common Stock or any other securities, nor will there be any sale of the Common Stock or any other securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted. A registration statement relating to the Common Stock has been filed with the Securities and Exchange Commission and is effective.

Cautionary Note Regarding Forward-Looking Statements

This news release includes “forward-looking statements” within the meaning of the securities laws. The statements in this news release regarding Molycorp’s current expectations and beliefs as to the consummation of the Offering, as well as other statements that are not historical facts, are forward-looking statements. Forward-looking statements are estimates and projections reflecting management’s judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. All information set forth in this release is as of October 15, 2013. Molycorp does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. Risk factors and uncertainties that may cause actual results to differ materially from expected results include, among others, our ability to successfully complete the Offering. Information about certain other potential factors that could affect our business and financial results and cause actual results to differ materially from those expressed or implied in any forward-looking statements are included from time to time in our filings with the Securities and Exchange Commission, including Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2012, as amended.

Molycorp has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Molycorp has filed with the SEC for more complete information about Molycorp and the offering. You may obtain these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus for the offering if you request it by calling Morgan Stanley & Co. LLC at 1-866-718-1649 or Goldman Sachs & Co. at 1-866-471-2526 or J.P. Morgan Securities LLC at 1-866-803-9204.

Source: Molycorp, Inc. ($MCP)

Raj Shah


Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>

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  • Aat Oskam

    This is a big stone in the pond… – 20 % today. It’s no fun being a REE company nowadays nor a shareholder.

    October 15, 2013 - 1:59 PM

  • Tim Ainsworth

    A read thru the 8K suggests the QR3 is going to be a doozy on virtually every front:
    A Neo breakout & Molymet TO of Mt Pass as a tolling facility looks more likely with each passing quarter.
    Those still clinging to M Smith’s “vertical integration” BS should note: “…. while our other operations continued to purchase raw materials from third parties rather than accepting delivery of products from our Molycorp Mountain Pass facility.”
    With the production of 2500 to 2700t REO first 9 months x 18% Nd/Pr why are they not able to deliver material downstream?
    Also interesting in the “Risk factors and uncertainties…” shopping list at the bottom:
    “uncertainties related to Molycorp Canada’s competitive position in the manufacture of neodymium-iron-boron, or NdFeB, powders resulting from the expiration of certain key patents”
    Ooops, M Smith blow $1.3B on a crock?

    October 16, 2013 - 10:11 AM

    • Veritas Bob

      From the 424B5 http://www.sec.gov/Archives/edgar/data/1489137/000104746913009641/a2216935z424b5.htm , filed on 10-15-13, p. s-27

      “In addition, Molycorp Canada’s current intellectual property position is dependent primarily on the essential nature of certain fundamental patents
      covering bonded magnets made with NdFeB powder and Molycorp Canada’s manufacturing process for NdFeB powder. The most effective of these
      patents expires in July 2014. While Molycorp Canada holds a wide range of additional patents and patent applications whose expiration dates extend
      (and in the case of patent applications, will extend, if issued) beyond 2014, none are of an equally essential nature as Molycorp Canada’s fundamental
      patents and exclusive rights, and therefore Molycorp Canada’s competitive position will be somewhat diminished as a result of the expiration of such
      patents. Molycorp Canada may therefore be unable to defend against new competitors entering the marketplace or maintain its existing pricing power.”

      October 16, 2013 - 11:26 AM

      • Tim Ainsworth

        Well you certainly fleshed that out Bob, wonder if it raises any Due Diligence queries?
        Doesn’t appear Neo will enjoy any primary input advantage from Mt Pass anytime soon.

        October 16, 2013 - 11:36 AM

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