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Molycorp acquires rare earth processor Neo Material Technologies in CDN$1.3 billion (US$1.26 billion) transaction

June 2012

Client(s) Molycorp, Inc.

Jones Day advised Molycorp, Inc. in its CDN$1.3 billion (US$1.26 billion) acquisition of Neo Material Technologies Inc. Under the agreement, which was unanimously approved by the two companies' boards of directors, Neo Materials shareholders received aggregate consideration consisting of (i) approximately CDN$927.2 million (US$897.4 million); (ii) 13,545,426 shares of Molycorp's common stock, par value $0.001 per share; and (iii) 507,203 shares issued by Molycorp's Canadian subsidiary, MCP Exchangeco Inc. (which are exchangeable on a one-for-one basis for shares of Molycorp's common stock). The acquisition was financed in part with an issuance of $650 million in original principal amount of 10% senior secured notes due 2020.

In addition to M&A representation, Jones Day provided banking, employee benefits, antitrust, government regulation, tax, and labor and employment advice regarding this transaction.

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