Moly Mines to raise funds to develop Spinifex Ridge iron ore
Friday, 09 Oct 2009
It is reported that Moly Mines has finalized the terms of its public offering originally announced following the filing of a preliminary short form prospectus on September 2nd 2009.
Under the revised terms of the offering, the company will offer for sale to the public up to 42,000,000 units in Moly Mines at a price of CAD 0.75 per unit, for gross proceeds of up to CAD 31,500,000.
Each unit is comprised of one ordinary share of the company and one third of one ordinary share purchase warrant. Each whole warrant entitles the holder to purchase one ordinary share at a price of USD 1 for a period of 3 years following the closing date.
The company anticipates closing will occur on or around October 27th 2009 and is subject to shareholder approval, which is being sought on October 26th 2009.
The offering is targeting a minimum USD 25 million as a condition to the restructure of the company's USD 150 million Interim Financing Facility. Funds raised above USD 25 million will be applied to reduce the size of the restructured debt facility.
Mr Derek Fisher MD of Moly Mines said that the company intends to use the first USD 25 million raised under the offering to bring its Spinifex Ridge Iron Ore Project in Western Australia into production, complete full feasibility engineering and design work on the 10 million tonnes per annum Spinifex Ridge Molybdenum Project, and general working capital purposes.
The offering is being conducted by a syndicate of agents led by Paradigm Capital Inc, and including GMP Securities LP. In addition, the StoneBridge Group Limited will be undertaking a private placement in certain jurisdictions including Australia.
