Moly Mines Limited

Moly Mines Limited

January 22, 2010 08:28 ET

Moly Mines: Hanlong Receives Major Approval for Moly Deal

TORONTO, ONTARIO--(Marketwire - Jan. 22, 2010) -


Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to announce that Hanlong Mining Investment Pty Ltd ("Hanlong") has received a critical approval from the People's Republic of China ("PRC") for Hanlong's US$200 million equity and debt investment in Moly Mines.

The National Development Reform Commission ("NDRC") has formally notified Hanlong of their permission for Hanlong to complete the subscription as contemplated by the Subscription Agreement dated 19 October 2009.

The NDRC is China's top economic planner. The receipt of NDRC approval is a critical step forward to achieve all necessary PRC regulatory approvals, which is a condition precedent to the completion of Hanlong's investment.

NDRC's approval will support the applications to the Ministry of Commerce and the State Administration of Foreign Exchange ("SAFE"), from which the two remaining approvals are expected. These approvals are to be considered in a sequential manner with the transaction currently before the Ministry of Commerce. Moly Mines is advised this approval process may take 2 weeks before being handed to SAFE.

Pursuant to the Hanlong Subscription Agreement dated 19 October 2009, all conditions precedent to completion were to be satisfied by 31 January 2010 or such other date as agreed by the parties ("Cut Off Date"). With NDRC approval received, the sequential manner of the approvals process and Chinese New Year in mid February, Moly Mines is contemplating an extension to the Cut Off Date to accommodate the completion of the remaining PRC approvals. Moly Mines will advise the market if such an extension is required and agreed.

Concurrently, Moly Mines is working with Hanlong and PRC domestic banks to secure the US$500 million Project Finance Loan Facility for the development of the Spinifex Ridge Molybdenum Project.

Cautionary Statement

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
    Moly Mines Limited
    Andrew Worland
    Company Secretary
    +61 8 9429 3300