Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

January 28, 2010 09:17 ET

Moly Mines: Hanlong Receives Second Major Approval for Moly Deal

TORONTO, ONTARIO--(Marketwire - Jan. 28, 2010) -

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

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

The Ministry of Commerce has formally notified Hanlong of their permission for Hanlong to acquire a controlling interest in Moly Mines Limited as contemplated by the Subscription Agreement dated 19 October 2009.

The Ministry of Commerce approval is the second of three necessary PRC regulatory approvals that form a condition precedent to the completion of Hanlong's investment.

The final PRC approval required is from the State Administration of Foreign Exchange and this is progressing.

As mentioned in the announcement on 22 January, Moly Mines is contemplating an extension to the 31 January 2010 cut-off date for the satisfaction of the remaining PRC approval conditions precedent and will advise the market if and when this is agreed.

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
    +1 416 777 1801
    or
    Moly Mines Limited
    Andrew Worland
    Company Secretary
    +61 8 9429 3300
    www.molymines.com