Moly Mines Limited: China Development Bank Approves US$500 Million Project Finance Facility for the Spinifex Ridge Molybdenum/Copper Project
TORONTO, ONTARIO -- (Marketwire) -- 04/11/11 -- Moly Mines Limited (TSX: MOL)(ASX: MOL) is pleased to announce it has been advised by Hanlong Mining Investment Pty Ltd ('Hanlong'), that the China Development Bank ('CDB') has approved US$500 million in project finance facilities to develop the Spinifex Ridge Molybdenum / Copper mine.
CDB have agreed to expand their commitment from the US$250 million, announced on 1st February 2011, to US$465 million and make available US$35 million in further working capital facilities to meet Hanlong's US$500 million financing commitment to Moly Mines. A formal commitment letter is expected to be issued by CDB within the next two weeks.
Moly Mines Managing Director and CEO Dr Derek Fisher said 'this seminal outcome signals a step-change in the fortunes of our Company and our shareholders. Having survived the hiatus of the GFC and the disappointments of 2008, we are now back on-track to building the world's next large scale molybdenum/copper mine. This outcome and the quality of the proposed debt is a great credit to the efforts and persistence over the last twelve months of our major shareholder, Hanlong, and also signals the strong belief of the Chinese bank in the future strength of the world molybdenum market'.
The Hanlong / Moly Mines financing team is now focused on completing the loan documentation by the end of June. The ultimate execution of that documentation is dependent on the satisfaction of a number of conditions including the finalization of a base case financial model that supports the proposed debt facilities and finalizing all major contracts for building and operating the mine.
The Company is in advanced negotiations with an engineering consortium for the construction of the mine and associated processing plant which is designed to have name plate capacity of 10 million tonnes per annum. Once drawdown of the funds is available construction of the mine and processing facilities will take approximately 24 months.
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.
Contacts:
Moly Mines Limited
Natalie Frame
Investor Relations
1 416 777 1801
1 416 371 7541
Moly Mines Limited
Derek Fisher
Managing Director
61 8 94293300
www.molymines.com