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Additional Information

Market:	ASX / TSX
Sector:	General Mining
EPIC:	MOL
Latest Price:	0.17 (0.00%)
52-week High:	1.05
52-week Low:	0.17
Market Cap:	65.43M

1 year chart

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Moly Mines Full Moly Mines profile here

Moly Mines (ASX: MOL, TSE: MOL) is a resources company focussing on the development of base metals projects including the world class Spinifex Ridge Molybdenum Project. Spinifex Ridge is the world's leading undeveloped primary molybdenum deposit.

Moly Mines' Spinifex Ridge Molybdenum project is ready for immediate construction pending the completion of financing. The Company also has an Iron Ore project which commenced production in late 2010. The project’s expected annual production rate is 800,000-1 million tonnes per annum from deposits located on the same tenements as the Spinifex Ridge Molybdenum Project.

Moly Mines nearing China investment completion

Friday, January 29, 2010

Australia-based molybdenum major Moly Mines Ltd (ASX/TSX: MOL) said the People’s Republic of China had provided second permissioning for its state-owned Hanlong Mining Investment Pty Ltd to purchase US$140 million in Moly shares, and supply a 10-year US$60 million loan.

The circa A$147.28 million-capped Moly indicated in November 2009 that the Australian Foreign Investment Review Board (FIRB) had given the nod to the investment, given funds would be directed toward the rapid development of the Spinifex Ridge molybdenum project, bringing with it associated spending and employment.

North-west Western Australia based Spinifex Ridge is considered to also contain large iron ore deposits. It is relatively close to Port Hedland, and the iron ore rich Mt Newman and Chichester Range.

Hanlong Mining Investment Pty Ltd is a subsidiary of the China-based, state owned Sichuan Hanlong Group.

Hanlong indicated it intended to purchase 207.1 million Moly shares for a consideration of US$140 million.

At the time of writing, Moly shares were trading for A$0.94.

Given today’s exchange rate of the AUD buying US$0.8942, Hanlon would be purchasing Moly’s shares at around A$0.74.

Hanlon will earn an additional 35.5 million Moly shares if it can successfully organise US$500 million in project financing by June 30 this year.

While it cannot be construed as a foregone conclusion, China’s Ministry of Commerce has given the second of three required permissions, with the third pending from the State Administration of Foreign Exchange.

That final permission has been described by Moly as “progressing”.

“Moly Mines is contemplating an extension to the 31 January 2010 cutoff date for the satisfaction of the remaining approval conditions precedent, and will advise the market if and when this is agreed,” chief executive Derek Fisher said.

At the time of the 2009 announcement, the US$200 million equity and debt injection was considered the largest China-based private foray into Australian resources.

Molybdenum is used as an additive for various steel alloys. It can handle extreme temperatures, making it ideal for electrical components and aircraft manufacturing.

Moly is listed on both the ASX and TSX, both using the symbol MOL.

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