Moly Mines Limited

Moly Mines Limited

April 03, 2007 09:13 ET

Moly Mines Ltd. Announces C$22.5 Million Equity Offering

TORONTO, ONTARIO--(CCNMatthews - April 3, 2007) -


Moly Mines Limited, (TSX:MOL)(ASX:MOL) Following the successful listing on the TSX in October 2006, Moly Mines Limited ("Moly Mines" or the "Company") is pleased to announce that it has entered into a bought deal private placement financing with a syndicate led by Paradigm Capital Inc. and including Haywood Securities Inc., GMP Securities LP and Wellington West Capital Markets Inc. to raise gross proceeds of C$22.5 million through the issuance of 7.5 million special warrants ("Special Warrants") priced at C$3.00 (the "Offering"). It is anticipated that the Offering will close on or around April 18, 2007 (the "Closing") and is subject to regulatory approval.

This financing has been undertaken to provide the Company with flexibility and financial strength for entering into contracts for "long lead time" items for the Spinifex Ridge processing plant and for project implementation activities during the bridging period between completion of the final feasibility study and financing the Spinifex Ridge development.

"The continued strength of the molybdenum metal market has encouraged the Company to accelerate the progress of the Spinifex Ridge Project" said Derek Fisher, Managing Director of Moly Mines.

Each Special Warrant will entitle the holder to acquire, for no additional consideration, one common share ("Common Share") of Moly Mines. Moly Mines has agreed to file a prospectus to qualify the issuance and distribution of the underlying Common Shares. In the event that a receipt is not issued prior to 60 days following Closing, the Special Warrants will be deemed to be converted and will convert into Common Shares subject to the balance of the hold period of 4 months from the date of Closing.

The Offering falls within the Company's 15% placement capacity under the ASX listing rules. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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