...and only 12 days ago....we had this.... I guess everyone wasn't in yet... good shakedown.
Moly Mines Reports Financing Update on Spinifex Ridge Molybdenum Project
Posted on: Wed, 05 Jan 2011 01:03:36 EST
Symbols: CHXDF, MYMNF
Jan 05, 2011 (Close-Up Media via COMTEX) --
Moly Mines Limited has announced the following update on progress toward the completion of the $500M financing facility for the Spinifex Ridge Molybdenum Project.
The Term Sheet between Moly Mines, China Export and Import Bank and China Development Bank (the latter two banks referred to as "the banking syndicate") is now substantially complete. The Term Sheet describes the terms and conditions, and conditions precedent, to the drawdown of the US$466 million bank loans that have been approved by the National Development and Reform Commission. Moly Mines reported that it acknowledges the significant contribution from Hanlong Mining Investment Pty (Hanlong) for the progress and milestones achieved to date.
Meetings were organized last week by Hanlong in Chengdu between executives of Moly Mines, the banking syndicate, Hanlong (as the facilitator and arranger of the project finance facility) and respective counsel, with the intention of finalizing the Term Sheet. Hanlong has advised Moly Mines that final revisions of the Term Sheet should be received from the banking syndicate and their legal counsel by the end of the calendar year. Subject to the outstanding matters being completed to the satisfaction of Moly Mines, the Company reported that it would proceed to execute the Term Sheet.
Last week's meetings in Chengdu follow the recent visit to Perth of senior representatives of China Development Bank and Hanlong.
Meanwhile concurrent meetings in Beijing last week between Moly Mines' executives and Chinese and Australian engineering groups have moved the draft fixed price lump sum EPC contract (Engineering, Procurement and Construction) forward.
Overall, Moly Mines said that securing the project finance loan facilities has taken longer than anticipated. The shareholder has advised the Company that the project finance facility documentation and approvals will not be complete to the point that it is available for drawdown by 31 January 2011 as required pursuant to the Subscription Agreement dated 19 Oct. 2009, as amended.
The non-Hanlong directors of the Company are assessing an extension to the Jan. 31, 2011 deadline for completion and drawdown of the project finance facilities and have sought corporate and financial advice to assist in their deliberations, and negotiations of terms satisfactory to Moly Mines. The Company reported that the market would be advised in the new year of the outcome of these negotiations.
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