Molycorp Tests Capital Markets with Large Capital Raise

The rare earth metals leader in the United States plans a sale of $200 million in equity and another $100 million in a note offering. Molycorp plans to use the capital to fund its capital expenditure plans that include its Mountain Pass facility in California.

Molycorp has a market value before the effects of this financing of about $1.2 billion. The $200 million in equity will change that, while the note will go on the other side of its balance sheet. It should be noted that in 2012 its long-term debt grew from less than $200 million in the first part of the year up to $1.19 billion by the end of September.

Molycorp shares are indicated down more than 10% at $7.87 in early bird trading, and the 52-week trading range is $5.75 to $35.79.