Shares in US rare earths developer Molycorp Inc. dropped to a new year-low this week after the company announced plans to sell a combination of stock and debt in order to raise up to $517.5m to help fund operations at its Mountain Pass mine in California.
The companys shares fell to $11.16 in early trading on the New York Stock Exchange before recovering marginally to $11.40 on Thursday. In the past year company had traded as high as $58.74, and reached a peak of over $74 in April 2011.
In a statement Molycorp said it would offer up to $172.5m in shares and $345m in convertible senior notes due in 2017. The proceeds will be used to finance operating expenses, working capital and capital expenditures through the first six months of 2013.
In China, local reports in the last week have indicated that...