13/10/2009 - 10:14

Moly continues Spinifex investor talks

13/10/2009 - 10:14

Bookmark

Upgrade your subscription to use this feature.

Moly Mines says it is continuing strategic investor talks for its Spinifex Ridge molybdenum operation in the Pilbara, as debt capital markets continue to resist supporting green-field projects.

Moly Mines says it is continuing strategic investor talks for its Spinifex Ridge molybdenum operation in the Pilbara, as debt capital markets continue to resist supporting green-field projects.

In its September quarterly report released today, the company said a dip in the molybdenum price is currently unfavourable for a traditional debt and equity capital project financing.

"The focus of all strategic investor discussions is to deliver to shareholders a path to full project financing certainty for the Spinifex Ridge Molybdenum Project," Moly said.

The company added that there was no assurance that negotiations would be successful.

During the quarter, the molybdenum price showed signs of recovery from $US10.30 per pound to $US18/lb, before easing back to $US13.40/lb at the end of the period.

The company also secured commitments for a $C31.5 million capital raising, which has yet to be approved by shareholders, and plans for a share purchase plan is currently being finalised.

The capital raising was a condition of a $US150 million debt restructure with the US-based Trust Company of the West.

Moly is progressing plans for its Spinifex Ridge iron ore project, anticipated to be online in 2009/10, which is expected to provide cash flow for the molybdenum project.

Shares in Moly were up 11.5 cents to $1.46 at 12:52 AEST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options