ERP Strategic Minerals, LLC, a mining entity owned by Tom Clarke, has entered into an agreement with Oaktree Capital Management, L.P. for the equipment relating to the Mountain Pass Mine Rare Earths mine ("Mountain Pass") owned by Oaktree.
This was an open issue to allowing the Mountain Pass mine sale to be completed more efficiently and ERP has addressed that issue in connection with its stalking horse bid. ERP has informed the Chapter 11 Trustee of this development.
ERP was selected as the stalking horse bidder by the Chapter 11 trustee, Paul E. Harner, for Molycorp Minerals, LLC and related entities (the "Debtors") and entered into an asset purchase agreement with the Trustee to purchase substantially all the assets and the surface real property rights of the Debtors at Mountain Pass. The purchase agreement has been filed with the US Bankruptcy Court in Delaware, together with a sale motion seeking the Court's approval of the sale under section 363 of the Bankruptcy Code.
The Mountain Pass mine, located in San Bernardino County, California, approximately 50 miles south of Las Vegas, Nevada, is the only mine and processing facility for rare earths minerals in the United States. The mine has an operating history dating back to the 1950s and was most recently placed on care and maintenance after the Debtors filed for Chapter 11 bankruptcy protection in 2015.
To assist with restarting the Mountain Pass mining and processing operations, ERP intends to assemble a consortium of highly experienced mining experts and professionals to support the restart. ERP is collaborating with Pala investments Limited and Peak Resources Limited, which have deep industry knowledge in the rare earths sector and substantial specialist mining expertise, regarding their involvement in the restart and operation of Mountain Pass.