Moly Mines has today announced the terms of its $C31.5 million ($A33 million) capital raising, a necessity for the restructure of its $US150 million financing facility.
The company said it will offer up for sale 42 million units priced at $C0.75 each, with every unit comprising of one ordinary share and one-third of one ordinary share purchase warrant.
The warrant, which has a life of three years from date of issue, entitles the holder to buy one ordinary share at $1 each.
Shares in Moly, which had previously been in a trading halt, were down 3.5 cents to 95c at 12:04 AEDST.
The capital raising, subject to shareholder approval, will be managed by a syndicate of agents led by Paradigm Capital Inc and including GMP Securities.
In addition, the StoneBride Group will also be carrying out private placements around the world, including Australia.
"The Offering is targeting a minimum $US25 million as a condition to the restructure of the Company's $US150 million Interim Financing Facility," Moly said in a statement.
"The Company intends to use the first $US25 million raised under the Offering to bring the Spinifex Ridge Iron Ore Project into production, complete full feasibility engineering and design work on the 10Mt/a Spinifex Ridge Molybdenum Project and general working capital purposes.
"Funds raised above US$25 million will be applied to reduce the size of the restructured debt facility."
