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Investing

Molycorp Acquisition Lifting Rare Earth Stocks (MCP, AVL, REE, SHZ, REMX)

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By Paul Ausick Published
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After the markets closed yesterday, rare earths miner Molycorp Inc. (NYSE: MCP) announced that it had agreed to acquire Toronto-listed Neo Materials Technologies Inc. for CDN$1.3 billion, or about CDN$11.30/share, a 40% premium to the stock’s closing price. Neo Materials is an ore-processing and product design company with operations and sales channels in 11 countries, including China.

The acquisition has spurred hopes for more of the same in the rare earths sector. Molycorp competitors Avalon Rare Metals Inc. (AMEX: AVL), Rare Element Resources Ltd. (AMEX: REE), and China Shen Zhou Mining & Resources, Inc. (AMEX: SHZ) are all getting a share price boost today.

Rare Element Resources is up nearly 15% at $5.87 in a 52-week range of $3.08-$16.55.

Avalon is up more than 4% at $2.89 in a 52-week range of $2.29-$10.11, and China Shen Zhou is up more than 8% at $1.58 in a 52-week range of $0.97-$6.62.

The Market Vectors Rare Earth/Strategic Metals ETF (NYSE: REMX) is up more than 4% at $17.51 in a 52-week range of $13.82-$28.91.

And not to forget the driver: Molycorp is more than 12.5% at $29.25 in a 52-week range $23.05-$79.16.

Contact [email protected] for any questions or corrections.

Disclaimer: Energy Exploration Technologies, Inc. ("EnergyX") has engaged 24/7 Wall St to publish this communication in connection with EnergyX's ongoing Regulation A offering. 24/7 Wall St has been paid in cash and may receive additional compensation. 24/7 Wall St and/or its affiliates do not currently hold securities of EnergyX.

This compensation and any current or future ownership interest could create a conflict of interest. Please consider this disclosure alongside EnergyX's offering materials. EnergyX's Regulation A offering has been qualified by the SEC. Offers and sales may be made only by means of the qualified offering circular. Before investing, carefully review the offering circular, including the risk factors. The offering circular is available at invest.energyx.com/.

Comparisons to other companies are for informational purposes only and should not imply similar results. Past performance is not indicative of future results. Market shortfall are forward‑looking estimates and are subject to substantial uncertainty. Investments in private placements, and start-up investments in particular, are long-term, illiquid, speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups

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About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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