Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

October 30, 2009 09:10 ET

Moly Mines Share Purchase Plan

TORONTO, ONTARIO--(Marketwire - Oct. 30, 2009) -

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

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to advise the key terms of its Share Purchase Plan (SPP) offer to shareholders. A short form prospectus has been filed and receipted in Canada and will be mailed with the subscription application to Canadian shareholders. An offer booklet compliant with ASIC Class Order [09/425] will be issued to Australian and New Zealand shareholders.

The SPP will be open to shareholders who are registered as holders of fully paid ordinary Moly Mines shares as at close of business November 4, 2009. It will provide eligible shareholders with an opportunity to subscribe for up to A$15,000 worth of new fully paid ordinary shares in the capital of Moly Mines, regardless of the number of shares they currently hold and without incurring brokerage and other transaction costs. The offer share price is C$0.75 per share, the price committed to by institutions in the Institutional Share Placement for 42 million units pursuant to the prospectus filed on October 7, 2009.

On October 19, 2009, Moly Mines announced that it had entered into a Subscription Agreement with a major strategic investor, Hanlong Mining Investment Pty Ltd. The Subscription Agreement contains a provision obliging Moly Mines to cap the SPP offer to 20 million Moly Mines shares. If applications under the SPP Offer exceed 20 million shares, Moly Mines will scale back individual applications in proportion to the total excess applications.

The short form prospectus and the SPP offer booklet to be distributed to eligible shareholders after the record date will confirm all application details.

Key terms of the SPP are:

  • Record date – Close of business November 4, 2009
  • Mail out of SPP booklet – 9 November 2009
  • Offer closing date – 30 November 2009
  • Estimated settlement and allotment date – 4 December 2009
  • Subscription price – C$0.75
  • Minimum application – A$2,000
  • Maximum application – A$15,000

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
    Natalie Frame
    Investor Relations Coordinator
    +1 416 777 1801
    or
    Moly Mines Limited
    Andrew Worland
    Company Secretary
    +61 8 94293300
    www.molymines.com