Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

March 15, 2010 08:45 ET

Moly Mines Limited: Final Approval Received for Hanlong Investment

TORONTO, ONTARIO--(Marketwire - March 15, 2010) -

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

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to advise that it has received confirmation from Hanlong Mining Investment Pty Ltd (Hanlong) that the final Chinese government approval has been received for Hanlong's US$200 million equity and debt investment in Moly Mines.

All material conditions precedent for the completion of the Hanlong Subscription Agreement have now been met by both parties.

Dr Derek Fisher, CEO of Moly Mines, commented: "the stage is now set for Hanlong to complete its strategic investment in Moly Mines and proceed with the development of the world's first new major molybdenum mine in 25 years".

Hanlong Managing Director, Hui (Steven) Xiao, said: "I'm extremely pleased to see that all relevant Chinese government approvals have been obtained. Hanlong is confident that the Spinifex Ridge Molybdenum Project will advance to the next stage of development quickly. As the future controlling shareholder of Moly Mines, Hanlong will continue to do what it can to benefit all the shareholders of the Company".

At completion, Moly Mines will issue 207.1 million shares for US$140 million and 35.5 million project finance options to Hanlong. In addition to the US$140 million equity investment, Hanlong will also provide Moly Mines with a 10 year US$60 million working capital facility. The funding package will be used to repay the TCW Interim Financing Facility and provide the initial funding required to re- commence development activities for the Spinifex Ridge Molybdenum Project.

Following completion of the equity and debt investment, Hanlong will procure a US$500 million project finance facility for the full development funding required for the Spinifex Ridge Molybdenum Project. Moly Mines is confident that the project finance facility will be available for drawdown by 30 September 2010 and is currently assisting Chinese institutions with extensive project, corporate and legal due diligence for the financing process.

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