Rare earth mineral miner Molycorp (NYSE;MCP) filed to sell up to $500 million of common stock held by shareholders. The company is also selling $172.5 million in convertible preferred shares. Molycorp said it would not be selling an new shares in the offering.
The company says it intends to use the net proceeds from the convertible preferred stock offering to fund its initial modernization and expansion plan and its capacity expansion plan.
Shares of MCP, which were down 2.8% prior to the filing, have been halted.
Similar to other rare earth providers, Molycorp shares have had a tremendous rise after China said it would limit exports of certain minerals. MCP shares, which were trading around $15 last summer, rose to a over $60 last month and were recently trading near $42.