18/11/2009 - 15:35

FIRB approves $US200m Moly investment

18/11/2009 - 15:35

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The Foreign Investment Review Board has given the green light for a Chinese entity to take a controlling interest in Perth-based Moly Mines, in a $US200 million deal that was first unveiled a month ago.

The Foreign Investment Review Board has given the green light for a Chinese entity to take a controlling interest in Perth-based Moly Mines, in a $US200 million deal that was first unveiled a month ago.

Moly this afternoon said it had received confirmation from FIRB to allow Sichuan Hanlong Group, through its Australian subsidiary Hanlong Mining Investment, to take a 54 per cent interest, following the conversion of options.

Moly will now seek shareholder approval at a meeting scheduled for December 16.

Under the deal, Hanlong will subscribe for 207.1 million Moly shares for $US140 million, or A74.7 cents per share, and provide a $US60 million, 10-year loan which will be applied to Moly's flagship Spinifex Ridge molybdenum project.

Hanlong will also arrange debt financing for Moly for up to $US500 million by the end of June next year.

Hanlong will receive 35.5 million unlisted Moly options, priced at $C1 each, should it get the debt financing for the Perth company.

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