A consolidation in North American rare earths (RE) players is afoot with Molycorp Minerals LLC and Great Western Minerals Group Ltd (GWMG) entering into a non-binding letter of intent for Molycorp to acquire a controlling interest in GMWG.
The deal is pursuant to a share issuance, merger, amalgamation, or other form of business combination, and subject to TSX Venture Exchange acceptance and the approval of disinterested GWMG shareholders.
The move comes amid much interest in the RE market, with China hosting most of the world’s RE reserves, and little commercial development elsewhere.
Significantly, China intends to reduce its exports and boost its production to serve domestic markets. This...