Molybdenum miner Moly Mines today announced the Spinifex Ridge Molybdenum Project was poised for immediate implementation, despite the economic slowdown.
Molybdenum miner Moly Mines today announced the Spinifex Ridge Molybdenum Project was poised for immediate implementation, despite the economic slowdown.
The company said all permitting required to commence construction had been completed, however the 15-month onsite construction schedule would only proceed once full project funding was completed. A revised first production date of July 2010 has now been targeted.
"The unprecedented rapid deterioration of the global financial markets means that full funding cannot be achieved before the end of 2008. However the company has taken the intermediate step toward the full project funding with the completion of the Trust Company of the West $US150 million Interim Financing facility," the company said in a statement.
The first $US30 million of the financing was received in September while the remaining $US120 million was received on October 31.
The interim financing maintains the project's "first mover" advantage. The company believes that the Spinifex Ridge Molybdenum Project remains the pre-eminent next new primary molybdenum producer.
"As a result of these difficult market circumstances the company is also instigating a concerted cost reduction program across all its activities to conserve its cash resources until the development funding is in place," Moly Mines said.
"The interim financing package will be allocated according to project critical path items with priority given to the core long lead equipment contracts previously awarded.
"This includes the major items of the comminution circuit such as primary and secondary crushers, ball mills and high pressure grinding rolls which are currently being manufactured and are scheduled to be available for shipment to site by mid-2009."
The company is currently reviewing the ramp up of engineering, procurement and construction activities in light of full funding being targeted for first half of 2009.
"The financial meltdown is likely to have an immediate effect on decisions that impact the medium to long term supply of molybdenum both from proposed new primary and existing primary mine expansions and by-product molybdenum supply from the copper industry as copper prices are ravaged," the company said.
"As a result of these difficult market circumstances the company is also instigating a concerted cost reduction program across all its activities to conserve its cash resources until the development funding is in place."
