Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

October 07, 2009 08:00 ET

Moly Mines Amends Terms of Offering

TORONTO, ONTARIO--(Marketwire - Oct. 7, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to announce that it has finalised the terms of its public offering (the "Offering") originally announced following the filing of a preliminary short form prospectus on September 2, 2009.

Pursuant to amended terms of the Offering, the Company will offer for sale to the public up to 42,000,000 units ("Units") in Moly Mines at a price of C$0.75 per Unit, for gross proceeds of up to C$31,500,000. Each Unit is comprised of one ordinary share ("Ordinary Share") of the Company and one-third of one Ordinary Share purchase warrant ("Warrant"), each whole Warrant entitling the holder thereof to purchase one Ordinary Share at a price of $1.00 for a period of 3 years following the closing date. The Company anticipates closing will occur on or around October 27, 2009, and is subject to shareholder approval which is being sought on October 26, 2009

As set out in the press release of September 2 2009, the Offering is being conducted by a syndicate of agents led by Paradigm Capital Inc. and including GMP Securities L.P. In addition, the StoneBridge Group Limited will be undertaking a private placement in certain jurisdictions including Australia. The Company has also retained Eas Advisors LLC to provide advice in connection with the Offering.

The Offering is targeting a minimum US$25 million as a condition to the restructure of the Company's US$150 million Interim Financing Facility. The Company intends to use the first US$25 million raised under the Offering to bring the Spinifex Ridge Iron Ore Project into production, complete full feasibility engineering and design work on the 10Mt/a Spinifex Ridge Molybdenum Project and general working capital purposes. Funds raised above US$25 million will be applied to reduce the size of the restructured debt facility.

A copy of the Preliminary Prospectus which should be viewed in conjunction with this announcement is available on www.sedar.com and the Company's website at www.molymines.com and on the ASX platform.

These press material do not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that will contain detailed information about the company and management, as well as financial statements.

This news release includes "forward-looking statements" as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Moly Mines' control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this news release, including, without limitation, those regarding Moly Mines' future expectations. Readers can identify forward- looking statements by terminology such as "aim," "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "potential," "predict," "project," "risk," "should," "will" or "would" and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines' actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates between the U.S. dollar and the Australian dollar, failure to recover the resource and reserve estimates of the Project; the failure of Moly Mines' suppliers and service providers to fulfill their obligations under construction, supply and tolling agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labor shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economical conditions. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.

Contact Information

  • Moly Mines Limited
    Derek Fisher
    Managing Director
    +61 8 94293300
    or
    Moly Mines Limited
    Natalie Frame
    Investor Relations Coordinator
    +1 416 777 1801
    www.molymines.com