GREENWOOD VILLAGE, Colo. (AP) -- Mining company Molycorp Inc. said Friday that it has agreed with Sumitomo Corp., a commodity trader and distributor, that it will provide a $130 million financing package to complete Molycorp's rare earth "Mine-to-Magnets" manufacturing supply chain.
Molycorp shares rose 3.3 percent in morning trading after the announcement to $31.81.
Under the deal's terms Sumitomo will purchase $100 million of Molycorp stock and provide Molycorp $30 million in debt financing at a low interest rate
In exchange for Sumitomo's package, Molycorp said it will provide Sumitomo with about 6,000 metric tons of various metals over the next seven years.
The deals are expected to close in February.