The bridge loan is done and update outMoly Mines arranges $150-million (U.S.) bridge loan
2008-08-11 06:13 MT - News Release
Mr. Derek Fisher reports
MOLY MINES LIMITED ANNOUNCES INTERIM FINANCING FOR SPINIFEX RIDGE
Moly Mines Ltd. is undertaking a $150-million (U.S.) financing (interim financing) for the Spinifex Ridge molybdenum project.
MolyMines has mandated a North American institution to complete detaileddue diligence with a view to making an offer of finance and achievingfinancial close by mid-September.
The funds from the interimfinancing will be used to continue the rapid advancement of the projectexecution and construction schedule.
The execution of theengagement letter coincides with approval of environmental conditionsand procedures for the development of the project from the WesternAustralian state government Minister for the Environment, DavidTempleman, MLA.
The board of Moly Mines recognizes the dedicationand quality of work of the company's environmental team and thanks thevarious stakeholders for their engagement and assistance in theapprovals process. The company is now making final preparations for thecommencement of site construction activities which includes lodgementof environmental bonds.
Moly Mines, in conjunction with itsadvisers, continues to progress a variety of full project financingalternatives from the capital markets and is in advanced discussionswith a number of potential strategic investors. Financial modellingshows the project can carry significant debt. The company continues totarget at least a two-thirds debt/one-third equity financing for theproject and will continue to keep the market informed as it progressesits full funding program.