Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

August 11, 2008 09:00 ET

Moly Mines Limited Announces Interim Financing for Spinifex Ridge

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2008) -

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

Moly Mines Limited, (TSX:MOL)(ASX:MOL) is pleased to announce it is undertaking a US$150 million financing ("Interim Financing") for the Spinifex Ridge Molybdenum Project ("Project").

Moly Mines has mandated a North American institution to complete detailed due diligence with a view to making an offer of finance and achieving financial close by mid September.

The funds from the Interim Financing will be used to continue the rapid advancement of the Project execution and construction schedule.

The execution of the engagement letter coincides with approval of environmental conditions and procedures for the development of the Project from the Western Australian State Government Minister for the Environment, the Honourable David Templeman MLA.

The Board of Moly Mines recognises the dedication and quality of work of the Company's environmental team and thanks the various stakeholders for their engagement and assistance in the approvals process. The Company is now making final preparations for the commencement of site construction activities which includes lodgement of environmental bonds.

Moly Mines, in conjunction with its advisors, continues to progress a variety of full Project financing alternatives from the capital markets and is in advanced discussions with a number of potential strategic investors. Financial modelling shows the Project can carry significant debt. The Company continues to target at least a two thirds debt / one third equity financing for the Project and will continue to keep the market informed as it progresses its full funding program.

These press materials 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.

THESE PRESS MATERIALS ARE NOT FOR RELEASE IN THE UNITED STATES.

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 economic 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
    (416) 777-1801
    (416) 777-1802 (FAX)
    Email: info@molymines.com
    Website: www.molymines.com