Molycorp (MCP) Breaks Off Talks with Sumitomo, Now Fully Funded
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Molycorp (NYSE: MCP) breaks off discussions with Sumitomo. The company has said "its investment needs have been filled, and since it is now producing significant revenue from sales to customers around the world..." Sumitomo is not necessary.
President and CEO of Molycorp, Mark Smith, said, "We are now fully funded for both Phase 1 and Phase 2 of our $781 million expansion and modernization of our flagship rare earth mine and manufacturing facility at Mountain Pass, and we are generating significant operating revenue from sales of product to customers around the world, including those in Japan. Thus, the original investment in Molycorp that Sumitomo offered is no longer a critical need. The conditions under which the original deal was structured shifted substantially, and in a way that did not offer sufficient value to both Molycorp and Sumitomo’s shareholders. That is why we have mutually agreed to end our discussions."
President and CEO of Molycorp, Mark Smith, said, "We are now fully funded for both Phase 1 and Phase 2 of our $781 million expansion and modernization of our flagship rare earth mine and manufacturing facility at Mountain Pass, and we are generating significant operating revenue from sales of product to customers around the world, including those in Japan. Thus, the original investment in Molycorp that Sumitomo offered is no longer a critical need. The conditions under which the original deal was structured shifted substantially, and in a way that did not offer sufficient value to both Molycorp and Sumitomo’s shareholders. That is why we have mutually agreed to end our discussions."
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