Moly

Moly Mines says it is continuing strategic investor talks for its Spinifex Ridge molybdenum operation in the Pilbara, as debt capital markets continue to resist supporting green-field projects.

Moly Mines has entered a trading halt as it prepares to raise at least $US25 million ($A30 million), a condition of its debt restructure conditions.

Shares in Moly Mines surged 42 per cent before being placed in a trading halt pending an announcement by the start of trade on Friday.

Moly Mines has warned its future depends on the success of debt restructure talks with its lender as project acquisition plans are put on the backburner.

Moly Mines says it is looking for projects with cash-flow potential to ease its debt pressures as a six-month deadline for a $US150 million ($A206 million) loan looms.

A dramatic fall in the molybdenum price has forced Moly Mines to consider selling surplus mining items no longer deemed necessary for a proposed smaller start-up operation for its Spinifex Ridge project in the Pilbara.