Moly Mines Limited

Moly Mines Limited

September 17, 2008 09:33 ET

Moly Mines Limited: Interim Financing Update

TORONTO, ONTARIO--(Marketwire - Sept. 17, 2008) -


Moly Mines Limited (TSX:MOL)(ASX:MOL) advises it is finalizing an Interim Financing Facility of US$150 million and expects to be in a position to drawdown the funds during October.

The key terms and conditions of the facility have been agreed. Confirmatory due diligence and preparation of legal documentation reflecting the term sheet, is now underway.

This facility will provide sufficient working capital for the Spinifex Ridge Molybdenum Project to maintain its leading position in the world molybdenum industry as it moves towards becoming the first major new molybdenum mine in over 25 years. The Company continues to focus on full Project funding through its negotiations with prospective strategic investors and with its work with its investment banking advisors.

The Spinifex Ridge Project continues to progress with the latest approval being that of the Western Australian Department of Industry and Resources (DoIR) to the Company's detailed mining schedule and proposed processing facility. This is the last major permit/approval required for the Project and as a consequence the Company has now lodged unconditional performance bonds for its mining activities allowing site construction activities to commence.

The development of the Spinifex Ridge deposit is taking place against a background of continuing molybdenum price stability with global Mo prices remaining firm, above US$33.00/lb. This is in contrast to most of the other metals which have experienced considerable price volatility over the last 3 years. These Mo prices are driven by continuing expansion of global molybdenum consumption, by the declining exports from China as it restrains its strategic steel-related commodity exports and by the stagnation of molybdenum supply as a by-product from copper mines.

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.

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
    Derek Fisher
    Managing Director
    +61 8 94293300
    Moly Mines Limited
    Natalie Frame
    Investor Relations Coordinator
    (416) 777-1801
    (416) 777-1802 (FAX)