AUA to sow constructionMay not hurt their project long term but we feel safer with money in MOL.
Adanac Molybdenum to slow construction at Ruby Creek projectSource: The Canadian Press
Posted: 03/03/08 7:10PM
Filed Under: Business News
TORONTO - Adanac Molybdenum Corp. (TSX:AUA) stock fell nearly 14 per cent on Monday after the Vancouver-based company said it's slowing down construction activities at the Ruby Creek molybdenum project in British Columbia while it redoubles efforts to raise the necessary financing.
In the meantime, exploratory drilling, equipment procurement and construction planning will continue during the winter, the company said.
"We are looking at how much cash we have on hand and what has to be done and we're looking at the financial markets out there," Adanac president and CEO Michael MacLeod said in a phone interview.
"I want to make sure we've got the resources in place to carry it through that capital acquisitions process."
Previously, the company announced plans to make a US$600-million debt offering to fund the Ruby Creek open-pit molybdenum project, which is just south of the Yukon boundary, at the headwaters of Ruby Creek.
The project will cost $640 million, according to company estimates, while about $40 million has already been raised.
In late December, Adanac completed a $15.4-million issue of new equity to partly fund the Ruby Creek development.