Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

December 03, 2007 08:45 ET

Moly Mines Appoints JPMorgan & Morgan Stanley as Joint Lead Managers for the Proposed Financing Of the Spinifex Ridge Project

TORONTO, ONTARIO--(Marketwire - Dec. 3, 2007) -

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

Moly Mines Limited, (TSX:MOL)(ASX:MOL) is pleased to announce it has appointed JPMorgan and Morgan Stanley as Joint Lead Arrangers and Bookrunners for the global debt raising and Joint Global Coordinators, Lead Managers and Bookrunners for the global equity raising for the proposed financing of the A$1.1 billion Spinifex Ridge Molybdenum Project.

Managing Director Dr Derek Fisher commented: "The appointment of two of the leading global investment banks, JPMorgan and Morgan Stanley, is a significant advancement for Moly Mines in the proposed financing of the Spinifex Ridge Project."

The aim of the proposed financing is to deliver a package that achieves minimal shareholder dilution whilst ensuring a commercially robust financing for the project. The key ongoing work streams for the proposed financing include, among other things:

- Completing corporate and transaction structure and security arrangements;

- Working with rating agencies to obtain credit ratings;

- Finalising the key project contracts in the areas of EPCM, additional long lead items such as secondary crushers, mining and infrastructure; and

- Finalising foundation off-take agreements.

The Company recently announced the introduction of US investment fund Harbinger Capital Partners to the Company's share register as part of a total placement of 22 million shares at A$4.00 per share, raising A$88 million. The respective Harbinger investors have subscribed for up to 17.1 million shares, being a 19.9% interest. This interim equity financing is expected to be completed this month following Foreign Investment Review Board and shareholder approval.

With the assistance of its financial advisor, Azure Capital, Moly Mines is making progress with the documentation requirements for the proposed total project financing and it hopes to achieve that project financing, subject to market conditions, by end of the first quarter of 2008.

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