Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

October 13, 2009 09:05 ET

Moly Mines Quarterly Activities Report

 

TORONTO, ONTARIO--(Marketwire - Oct. 13, 2009) -

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

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to report the highlights of their Quarterly Activities Report for the period ending 30 September. The full report is available on SEDAR (www.sedar.com) and on the Company website (www.molymines.com).

Highlights

Corporate & Finance

  • TCW Interim Financing Facility restructured.
  • C$31.5 million Institutional Placement bookbuild completed October 2010:
    • 42 million shares at C$0.75/share with a 1 for 3 (14 million), 3 year attaching warrant/option exercisable at C$1.00.
    • Shareholder approval for the Institutional Placement will be sought at a meeting of shareholders scheduled for 26 October 2009.
  • Share Purchase Plan arrangements being finalized.

Spinifex Ridge Molybdenum Project

  • A$120 million worth of major long-lead items of equipment delivered to Perth.
  • Feasibility engineering and detailed design work on the 10Mt/a project commenced.

Spinifex Ridge Iron Ore Project

  • Pre-Feasibility Study completed:
    • Indicated and Inferred JORC Resource:
      • 6.1 million tonnes Indicated Resource, 59% Fe.
    • 1Mt/a production rate:
      • 3 to 1 strip ratio.
      • 60:40 fines:lump.
    • A$9.4 million capital cost, plus port access pre-payment.
    • A$45.7/t operating cost.
  • Mining proposal submitted, approval due by December 2009.
  • Development timetable:
    • Construction Q1, 2010.
    • Pre-strip – Q2, 2010.
    • First Ore on Ship – Q3, 2010.
  • Port access secured at the new Utah Point development:
    • 0.8Mt/a from 1 July 2010 through February 2012.
    • Ship loading prepayment due October 2009.

Markets

  • Molybdenum markets showed signs of recovery during the quarter climbing from US$10.30/lb to US$18.00/lb before settling back around US$13.40/lb at Quarter end (Ryan's Notes)
  • Iron ore market spot market continues to perform strongly closing at US$85.00/t CIF China at Quarter end (Metal Bulletin)

 

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
    +1 416 777 1801
    www.molymines.com