MOLY Mines Ltd has become the latest Western Australian mining company to gain backing from US investment group Harbinger Capital, which has also invested in Fortescue Metals Group, Poseidon Nickel and Po Valley Energy. Moly announced that Harbinger has acquired 17.1 million shares at $4 per share, representing a $68 million investment. Moly has also agreed with “a number of other global investment funds to issue up to a further 4.9 million shares on terms no more favourable than those subscribed to by Harbinger”. The placement was priced in line with Moly’s current market price. The capital raising is the first leg in Moly’s plans to raise $1.1 billion of debt and equity to fund its Spinifex Ridge molybdenum project in the Pilbara. A common link with Harbinger’s WA investments is Andrew Forrest. Harbinger has a 15.7 per cent stake in iron ore miner FMG, of which Mr Forrest is chief executive, and has a 9 per cent stake in nickel miner Poseidon, which Mr Forrest chairs. Harbinger also has a 17.9 per cent stake in Italian gas producer Po Valley Energy, which is run by Michael Masterman, who was formerly finance director at Mr Forrest’s old company Anaconda Nickel (now Minara Resources). Mr Forrest was a director of Moly until last year.
