Molycorp, Inc. (NYSE: MCP) ('Molycorp? or the 'Company?) today announced
the pricing of $650 million aggregate principal amount of 10.000% senior
secured notes due 2020 in an offering exempt from the registration
requirements of the Securities Act of 1933 (the 'Securities Act?). The
notes will be senior secured obligations of Molycorp and will be
guaranteed by certain of Molycorp′s subsidiaries. The gross proceeds
from the offering of the senior secured notes will be placed into escrow
pending the consummation of the proposed acquisition by the Company of
Neo Material Technologies Inc. ('Neo?). Following release of the gross
proceeds from escrow, the Company intends to use a substantial portion
of the net proceeds from the offering to fund a portion of the Company′s
proposed acquisition of Neo, including related fees and expenses, and
any remaining net proceeds would be used for general corporate purposes.
The senior secured notes and related note guarantees to be offered will
not be and have not been registered under the Securities Act and may not
be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. This press release
shall not constitute an offer to sell or a solicitation of an offer to
buy such notes or note guarantees and is issued in accordance Rule 135c
under the Securities Act.
About Molycorp, Inc.
With offices in the U.S., Europe, and Japan, Molycorp, Inc. is one of
the world's leading rare earths and rare metals companies. Fully
integrated across the rare earth mine-to-magnets supply chain, it
currently produces rare earth oxides at its flagship rare earth mine and
processing facility at Mountain Pass, California, as well as rare earth
metals, rare earth alloys, and the rare metals niobium and tantalum.
Through its joint venture with Daido Steel and Mitsubishi Corporation,
Molycorp expects to begin manufacturing next-generation, sintered
neodymium-iron-boron (NdFeB) permanent rare earth magnets in 2013. The
rare earths and rare metals that Molycorp produces are critical inputs
in existing and emerging applications including: clean energy
technologies, such as hybrid and electric vehicles and wind power
turbines; multiple high-tech uses, including fiber optics, lasers and
hard disk drives; numerous defense applications, such as guidance and
control systems and global positioning systems; advanced water treatment
technology for use in industrial, military and outdoor recreation
applications; and other technologies.
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 of the senior secured notes and related
note guarantees and uses of proceeds thereof, 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 May 18, 2012. 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 proposed offering and our ability to
successfully complete the acquisition of Neo. 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, 2011.
Molycorp
Jim Sims, +1 303-843-8062
Vice
President Corporate Communications
Blackman, +1 303-843-8067
Senior Manager, Investor Relations
