Molycorp Sells Bonds To Raise $517.5 Million

Bloomberg reported that Molycorp Inc. will sell shares and convertible senior notes, valued at as much as $517.5 million, with the intention of using the proceeds to fund operating expenses, working capital and capital expenditures, including the construction of its mine in California.

As quoted in the report:

The company’s largest shareholders, Resource Capital Fund and Chile’s Molibdenos y Metales SA (MOLYMET), have agreed to buy $35 million and $25 million of stock respectively if Molycorp requests it, Molycorp said in a filing. Molycorp won’t request the purchase if the offering of convertible notes is successful, according to a separate filing.

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