Took the Whole 80MilAdanac COMPLETES increase TO BRIDGE FINANCING
May 30, 2008 - Vancouver, British Columbia
Dr. David Stone, CEO, reports:
ADANAC MOLYBDENUM CORPORATION COMPLETES INCREASE TO THE PREVIOUSLY ANNOUNCED BRIDGE FINANCING; PROCEEDS TO BE USED TO PARTIALLY FUND EQUIPMENT PURCHASES, DETAILED ENGINEERING, CONSTRUCTION PLANNING AND CORPORATE OVERHEAD FOR THE DEVELOPMENT OF THE PROPOSED RUBY CREEK PROJECT.
Adanac Molybdenum Corporation (TSX: AUA) (Pink Sheets: AUAYF) (Frank: A9N) (“Adanac” or the “Company”) today confirmed it closed on an additional $11.5 million to increase the previously announced Bridge Financing to a total funded amount of $80 million. The additional $11.5 million of the Bridge Financing was purchased by a leading global institutional investor. The proceeds will be used to fund continued development of the company’s proposed Ruby Creek molybdenum project.
The financing is in the form of senior secured notes and warrants issued pursuant to a Securities Purchase Agreement signed on 23 May, 2008. The agreements related to the financing were filed on SEDAR.
Adanac Molybdenum Corp. is engaged in the exploration and development of mines to produce molybdenum and other ferro-alloy metals. Its flagship property is the Ruby Creek molybdenum project located near Atlin, BC. The property contains an open pit reserve of 157.7 million tonnes grading 0.058% Mo using a 0.040% cut-off grade. This news release has been reviewed by Michael MacLeod, P.Eng. a qualified person pursuant to National Instrument 43-101 and the President and Chief Operating Officer, of the Company.
On Behalf of Management