Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

March 24, 2010 08:45 ET

Moly Mines Limited: Hanlong Investment Settlement Update

TORONTO, ONTARIO--(Marketwire - March 24, 2010) -

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

Moly Mines Limited (TSX:MOL)(ASX:MOL) is pleased to advise that it has received notification from Hanlong Mining Investment Pty Ltd (Hanlong) that it plans to settle the US$200 million equity and debt investment in Moly Mines in the second half of April 2010.

Hanlong are completing their financing arrangements to enable the transfer of funds, which will result in Hanlong becoming Moly Mines major shareholder. All key conditions precedent to completion have been met with customary corporate warranties to be given at settlement.

As previously reported by Moly Mines, banking due diligence for the US$500 million Spinifex Ridge Molybdenum Project Finance Loan Facility has commenced, with members of Hanlong and a Chinese financial institution visiting the Spinifex Ridge Molybdenum and Iron Ore projects this week. The Project Finance Loan Facility is expected to be available for drawdown by 30 September 2010.

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
    Derek Fisher
    Managing Director
    +61 8 94293300
    www.molymines.com