Moly Mines Limited

Moly Mines Limited

April 18, 2007 13:03 ET

Moly Mines Completes C$22.5 Million Private Placement

TORONTO, ONTARIO--(CCNMatthews - April 18, 2007) -


Moly Mines Limited, (TSX:MOL)(ASX:MOL) is pleased to announce that it has completed its previously announced underwritten private placement of Special Warrants for gross proceeds of C$22,500,000 with a syndicate of underwriters led by Paradigm Capital Inc. and including Haywood Securities Inc., GMP Securities LP and Wellington West Capital Markets Inc.

The underwriters sold 7,500,000 special warrants ("Special Warrants") at a price of C$3.00 per Special Warrant. Each Special Warrant entitles the holder to acquire one ordinary share (an "Ordinary Share") of Moly Mines for no further consideration. Moly Mines has agreed to use its best efforts to file a prospectus to qualify the issuance and distribution of the underlying Ordinary Shares. In the event that a receipt for such prospectus is not issued by the relevant securities authorities prior to 60 days following Closing, the Special Warrants will be deemed to be converted and will convert into Ordinary Shares subject to the balance of the hold period of 4 months from the date of Closing.

As compensation for services provided to the Company, the Underwriter will receive a commission payment equal to 5% of the gross proceeds from the offering.

This financing has been undertaken to provide the Company with flexibility and financial strength for entering into contracts for "long lead time" items for the Spinifex Ridge processing plant and for project implementation activities during the bridging period between completion of the final feasibility study and financing the Spinifex Ridge development.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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