Moly Mines secures USD 200 million in aid from Hanlong
Thursday, 22 Oct 2009
Moly Mines Limited said that Chinese investor Hanlong Mining Investment Pty Limited will provide it with USD 200 million in debt and equity funding through a subscription agreement.
Moly Mines announced earlier in the month it will raise up to USD 29.89 million through equity financing to bring its Spinifex Ridge Iron Ore project in Western Australia into production and for working capital purposes. The company said the additional funding would allow development of the Spinifex Ridge Iron Ore project to start as early as mid 2010.
Mr Derek Fisher CEO of Moly Mines said that "This agreement represents a wonderful opportunity for Moly Mines to clear the company's existing debt and build the Spinifex Ridge project significantly ahead of the point at which funding from traditional debt and equity markets becomes available."
Under the terms of the subscription agreement, Hanlong will subscribe for 207.1 million shares in Moly Mines for USD 140 million at 74.7 Australian cents a share based on an exchange rate of 90.48 US cents to the Australian dollar.
Hanlong will also provide Moly Mines with an interest bearing USD 60 million, 10 year loan to procure debt financing of USD 500 million by June 30th 2010 for the Spinifex Ridge project. Hanlong will also receive 35.5 million unlisted three year options exercisable at one Canadian dollar each.
