Moly Mines Limited

Moly Mines Limited

November 14, 2007 08:32 ET

Moly Mines Completes Subscription Agreements With New Strategic Investors

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2007) -


Moly Mines Limited, (TSX:MOL)(ASX:MOL) and the Spinifex Ridge Molybdenum Project has received a major confidence boost with the execution of subscription agreements between the Company and Harbinger Capital Partners Master Fund I. Ltd and Harbinger Capital Partners Special Situations Funds, L.P. (collectively "Harbinger"), two US based investment funds which collectively manage, as of November 1, 2007, more than US$17.9 billion in assets.

Harbinger have executed Subscription Agreements for the issue of up to 17.1 million new shares in Moly Mines at A$4.00 per share to raise A$68.4 million.

Moly Mines is also finalising arrangements with a number of other global investment funds to issue up to a further 4.9 million shares on terms no more favorable than those subscribed to by Harbinger. Following the placement of these shares, Harbinger will hold a 19.9% interest in the Company.

Harbinger are well known to the Australian resources industry and share the Moly Mines' vision of creating a major global mining house.

Moly Mines Chief Executive Officer, Dr. Derek Fisher said "Harbinger, who will be offered a board seat, bring to the Company a strong New York presence with a significant track record as a very successful resources investor. These agreements send a powerful signal to the market, particularly at this crucial time as we enter the financing phase for Spinifex Ridge."

The funds raised from the equity financings will be directed toward preconstruction activities including early commitments to secure scheduled deliveries of major earthworks, mining and civil contracts, significant items of processing plant such as secondary crushers and infrastructure agreements for gas supply and power generation, water delivery and construction camps.

This equity financing represents the first step in the Company's total project financing plan for the A$1.1 billion Spinifex Ridge Project and will maintain the considerable development momentum gained since the completion of the feasibility study and provide financial strength as we approach the final negotiations with the debt and equity community for the total project funding.

In recent weeks, Moly Mines has received debt and equity capital market arrangement pitches from the world's leading investment banks and these meetings have confirmed the schedule for financing delivery by end of first quarter 2008. The Moly Mines Board is confident that the final capital plan for Spinifex Ridge will achieve a debt/equity ratio that delivers minimal dilution for shareholders whilst ensuring a sound financing platform for the project.

Placement Mechanics

ASX and TSX rules will require specific shareholder approval in respect of the maximum allocation to Harbinger of 17.1 million shares and any further issues made within the 4.9 million shares expected to be issued to other investors. Moly Mines is preparing general meeting information and will set a general meeting date in December to approve these transactions.

The investment by Harbinger is subject to shareholder approval, Foreign Investment Review Board approval and other customary closing conditions including approval of the Toronto Stock Exchange.

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.

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