03/12/2010 - 09:58

Chinese approve Moly Mines loan

03/12/2010 - 09:58

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The Chinese majority owner of Moly Mines, Hanlong Mining Investment, has received Chinese government approval for a $US466 million loan to complete financing for the Spinifex Ridge molybdenum-copper project in the Pilbara.

Chinese approve Moly Mines loan

The Chinese majority owner of Moly Mines, Hanlong Mining Investment, has received Chinese government approval for a $US466 million loan to complete financing for the Spinifex Ridge molybdenum-copper project in the Pilbara.

In a statement to the Australian Securities Exchange, Moly Mines said the Chinese government has approved the funding for the development and construction of the 10 million tonnes per year project.

Moly Mines CEO and managing director Derek Fisher said the approval was critical for any major overseas investment by a Chinese organisation.

"It now allows our banking syndicate to finalise the negotiation of the term sheet for the financing of the molybdenum-copper project," he said.

"This important milestone caps a momentous week for the Company, the week during which we also commenced production of iron ore at Spinifex Ridge."

On October 19, Hanlong committed itself to arranging $US500 million in project finance by January 31.

The Chinese government approval is for a loan of $US466.

The balance of funding is being sourced by Hanlong, Moly Mines said.

Moly Mines anticipates completion of the Term Sheets later this month, before proceeding with full form loan documentation.

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