The Pentagon becomes MP Materials’ largest shareholder

The US Department of Defense bought $400m of MP Materials preferred stock and agreed a 10-year floor price of $110 a kilogram for its neodymium-praseodymium output. The deal is part of a wider package to build a US supply chain for rare earth magnets. MP shares rose more than 50%.

Why it matters. A state buyer with a price floor removes much of a project’s price risk, which changes how it can be financed.

Source

MINING.COM

In the course

Module 7: Funding a project