Rare earth miner Molycorp (NYSE:MCP) shares rallied more than 10 percent Friday morning after announcing after market yesterday that it has agreed to acquire Neo Material Technologies (TSE:NEM) in a C$1.3 billion deal, creating one of the most vertically integrated rare earth companies in the world.

With prices of rare earth metals at all time highs, equity research firm Dahlman Rose and Co. has expanded its coverage on the industry, initiating ratings on five rare earth companies, and increasing its price target for US-based Molycorp (NYSE:MCP) by 47%.

Molycorp plans to produce 20,000 tonnes per year of rare earth metals from 2012 and may even raise that capacity to 40,000 tonnes per year.

Canadian shares gained a second day as energy producers climbed after positive economic reports from the U.S., the country's largest trading partner, indicated economic growth is gaining momentum, outweighing declines in mining stocks. The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) added 0.4 percent to 12,557.31 at 12:33 p.m. in Toronto on Friday. Nine of ten groups gained.

If you think the pain in the resource sector is over, Rick Rule will gladly give you a reality check. But, the chairman of Sprott U.S. Holdings says being brash in a bear market where there is no competition will pay off.

Curis Resources (TSE:CUV) has arranged to raise $6 million through a non-brokered private placement financing, with funds to be used to advance the development of the company's Florence copper project in Arizona, which earlier this year yielded strong economics in a prefeasibilty report. 

Iron ore explorer Afferro Mining (LON:AFF) (CVE:AFF) said talks are continuing with would-be buyer International Mining and Infrastructure Corporation (LON:IMIC) following confirmation the latter has the funds needed to launch a bid.

Largo Resources (CVE:LGO) has garnered some impressive feedback from analysts this week, with some saying the company has the potential to become a leading supplier of vanadium in the stable jurisdiction of Brazil.