TORONTO, June 11, 2012 /CNW/ - Neo Material Technologies Inc. (TSX: NEM) ("NEM" or the "Company") is pleased to announce that it has completed the previously announced
Plan of Arrangement (the "Arrangement") with Molycorp, Inc. ("Molycorp") and MCP Exchangeco Inc. ("Exchangeco"), pursuant to which all of the NEM common shares were acquired by
Exchangeco. (See press releases dated March 8, 2012, May 30, 2012, May
31, 2012 and June 8, 2012). The Arrangement was approved by special
resolution of NEM's shareholders at the annual general and special
meeting of shareholders held on May 30, 2012 (the "Meeting").
Pursuant to the Arrangement, NEM shareholders will receive, in the
aggregate: (i) cash consideration of approximately $927.2 million; (ii)
13,545,426 common shares of Molycorp; and (iii) 507,203 common shares
of Exchangeco. Shareholders who elected to receive all or a part of
the consideration in cash, will be subject to a pro-ration factor of
approximately 0.746798 applied to such election for cash and a
corresponding increase made to the portion of the consideration in the
form of Molycorp Shares or Exchangeable Shares (per the affected
shareholders express or deemed elections).
In connection with the completion of the Arrangement, NEM is also
pleased to announce that Mark A. Smith, John F. Ashburn, Jr., John L.
Burba PhD, Geoffrey R. Bedford, Michael F. Doolan, Ross R. Bhappu and
Mark S. Kristoff have been appointed to the board of directors of NEM.
The term of the board of directors elected at the Meeting expired with
the completion of the Arrangement.
About Neo Material Technologies
Neo Material Technologies Inc. is a producer, processor and developer of
neodymium-iron-boron magnetic powders, rare earths and zirconium based
engineered materials and applications, and other rare metals and their
compounds through its Magnequench and Performance Materials divisions.
These innovative products are essential in many of today's high
technology products. Magnequench's Neo Powders are used to produce
bonded magnets, generally used in micro motors, precision motors,
sensors and other applications requiring high levels of magnetic
strength, flexibility, small size and reduced weight. Rare earth and
zirconium applications include catalytic converters, computers,
television display panels, optical lenses, mobile phones and electronic
chips. The Company's rare metals products are primarily used in the
wireless, LED, flat panel, turbine, solar and catalyst industries. The
Company is headquartered in Toronto, Canada.
About Molycorp, Inc.
With offices in the U.S., Europe, and Japan, Molycorp, Inc. is one of
the world's leading rare earths and rare metals companies. Fully
integrated across the rare earth mine-to-magnets supply chain, it
currently produces rare earth oxides at its flagship rare earth mine
and processing facility at Mountain Pass, California, as well as rare
earth metals, rare earth alloys, and the rare metals niobium and
tantalum. Through its joint venture with Daido Steel and Mitsubishi
Corporation, Molycorp expects to begin manufacturing next-generation,
sintered neodymium-iron-boron (NdFeB) permanent rare earth magnets in
2013. The rare earths and rare metals that Molycorp produces are
critical inputs in existing and emerging applications including: clean
energy technologies, such as hybrid and electric vehicles and wind
power turbines; multiple high-tech uses, including fiber optics, lasers
and hard disk drives; numerous defense applications, such as guidance
and control systems and global positioning systems; advanced water
treatment technology for use in industrial, military and outdoor
recreation applications; and other technologies. For more information
please visit www.molycorp.com.
Certain information contained in this news release, including any
information relating to the proposed transaction (the "Transaction")
and the timing of effective time of the Arrangement are
"forward-looking". These statements relate to future events, some of
which are outside of NEM's control. These forward-looking statements
reflect NEM's current internal expectations or beliefs and are based on
information currently available to NEM. These forward-looking
statements are subject to a variety of risks and uncertainties,
including the risk that the conditions precedent to the Arrangement
will not be satisfied in the expected timeframe or at all. In some
cases forward-looking information can be identified by terminology such
as "may", "will", "should", "expect", "intend", "plan", "anticipate",
"believe", "estimate", "projects", "potential", "scheduled",
"forecast", "budget" or the negative of those terms or other comparable
terminology. Assumptions upon which such forward looking information
regarding completion of the Transaction is based include that NEM will
be able to satisfy the conditions to the Transaction, that the required
approvals will be obtained from the shareholders and of NEM, that all
third party regulatory and governmental approvals to the Transaction
will be obtained and all other conditions to completion of the
Transaction will be satisfied or waived. Although NEM believes that the
forward-looking information contained in this news release is based on
reasonable assumptions, readers cannot be assured that actual results
will be consistent with such statements. Accordingly, readers are
cautioned against placing undue reliance on forward-looking
information. NEM expressly disclaims any intention or obligation to
update or revise any forward-looking information, whether as a result
of new information, events or otherwise, except in accordance with
applicable securities laws.
SOURCE Neo Material Technologies Inc.
For further information:
Chief Financial Officer
(416) 367-8588, ext.335
(416) 962-3300, ext. 225