Molycorp buys Neo Material for $1.3-billion

Rare earth miner Molycorp Inc. (MCP-N30.894.9118.90%) is set to buy Neo Material Technologies (NEM-T10.942.9737.26%) in a $1.3-billion (Canadian) cash and share deal that will give Molycorp access to Neo’s rare earth processing capabilities and patents.

The friendly deal will see Colorado-based Molycorp pay $8.05 in cash plus 0.122 of a share for each share of Toronto-based Neo Material. That would amount to a total consideration of $11.30 per share, based on Molycorp’s 20-day average.

Molycorp chief executive Mark Smith told Reuters the deal will bring together Molycorp’s massive production capacity at the Mountain Pass mine in California and Neo’s advanced rare earth processing capabilities.

Read Full Article from Globe and Mail

- Posted: 2012-03-09 15:48:12

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