Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

April 30, 2008 15:44 ET

Moly Mines Reports Quarter Activities

TORONTO, ONTARIO--(Marketwire - April 30, 2008) -

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

Moly Mines Limited, (TSX:MOL)(ASX:MOL) is pleased to report the highlights of their Quarterly Cash Flow and Quarterly Activities Report for the period ending March 31, 2008 available on the Company website (www.molymines.com) and on SEDAR (www.sedar.com).

Spinifex Ridge Molybdenum Project Highlights

- Pre-construction contracting locks in approximately A$260M of the capital cost of Spinifex Ridge.

- Major resource expansion doubles the tonnage, increasing the contained molybdenum to 1.0 billion lbs, copper to 1.75 billion pounds.

- Last major project permit advances through the EPA with the EPA Bulletin released in early April.

- Enlarged resource leads to revision of mine plans with expected 20-30 year mine life without effecting the first 10 years mining optimisations.

- Ordering of long lead items for the mill continues with Metso Australia awarded the Secondary Crusher contract.

- EPCM contract executed with WorleyParsons, Australia's largest resource engineering company - A$100 million.

- A$1.1 billion mining contract awarded to Macmahons for first 7 years of production.

- Owner's team manning exceeds 65 mining professionals and support, WorleyParsons' engineering and design team manpower currently stands at 173.

Corporate, Finance and Marketing

- US investment banking veteran Michael Senft appointed to the Board of Moly Mines

- Spinifex Ridge Project financing activities accelerating as Project contracting activities and environmental permitting approach finalisation.

- Strong cash position of A$76.4 million at quarter end.

- Molybdenum markets remain strong - Mo oxide US$33.5/lb at end of March.

During the period, activities were focussed on detailed design for the mine and processing facilities in preparation for the construction phase once project financing is completed.

Since the quarter-end, the Environmental Protection Authority of Western Australia (EPA) released its 'EPA Bulletin' which included a positive recommendation that the Spinifex Ridge Molybdenum Project be officially approved. This is subject to the implementation of certain conditions, all of which are considered to be reasonable and manageable through the company's best practice systems.

The end-March quarter saw an acceleration of financing activities for the project as contracting activities and environmental permitting approach finalisation and, in April, US investment banking veteran Michael Senft was appointed to the Moly board.

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 fulfil 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
    Website: www.molymines.com