Adanac Molybdenum Corporation
FRANKFURT : A9N
PINK SHEETS : AUAYF
TSX : AUA

Adanac Molybdenum Corporation

April 16, 2008 09:30 ET

Adanac Announces $80 Million Bridge Financing Offer

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 16, 2008) -

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

Adanac Molybdenum Corporation (TSX:AUA)(PINK SHEETS:AUAYF)(FRANKFURT:A9N) today announced the Company has signed a term sheet with a leading global institutional investor to provide $80 million bridge financing to fund continued development of the company's proposed Ruby Creek molybdenum project. The financing would be in the form of senior secured notes, and is subject to regulatory approval, due diligence by the investor and mutual agreement of definitive terms; with final acceptance by both parties expected by mid-May, 2008.

"This financing would advance our Ruby Creek project to the next level" said Dr. David Stone, CEO. "The funding would enable Adanac to continue its engineering and construction planning activities and take possession of processing equipment we have ordered for the molybdenum mine. It represents a strong vote of confidence from the financial market for building the project, and would provide the funds to see the company through the time period to secure the balance of the money necessary to build and start-up the mine, processing facilities and related infrastructure."

The offer was arranged through Adanac's United States based investment banker and forms part of the overall project financing initiative; underway since it was previously announced on October 17, 2007; which is contemplated as a debt and equity offering of approximately $750 million. Completion of the balance of the project financing is targeted for the summer of 2008.

Adanac Molybdenum Corporation is engaged in the exploration and development of mines to produce molybdenum and other ferro-alloy metals. Its flagship property is the Ruby Creek molybdenum project located near Atlin, BC. The property contains an open pit reserve of 157.7 million tonnes grading 0.058% Mo using a 0.040% cut-off grade. This news release has been reviewed by Michael Petrina, P.Eng. a qualified person pursuant to National Instrument 43-101.

On Behalf of Management

ADANAC MOLYBDENUM CORPORATION

Michael MacLeod, President and Chief Operating Officer

This release is not an offer of securities for sale in the United States.

Any securities that the Company may offer for sale in the future may not be offered or sold in the United States unless registered under the United States Securities Act of 1933 or unless an exemption from registration is available.

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Stock Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Adanac Molybdenum Corporation
    Michael MacLeod
    President & COO
    (604) 535-6834
    (604) 536-8411 (FAX)
    or
    Adanac Molybdenum Corporation
    Corporate Office
    (604) 531-9639
    (604) 531-9634 (FAX)
    Email: info@adanacmoly.com
    Website: www.adanacmoly.com