29/09/2008 - 09:55

Moly executes $US150m interim facility

29/09/2008 - 09:55

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Moly Mines Ltd has executed full financing documentation for the provision of a $US150 million interim debt financing facility with various funds associated with the Trust Company of the West.

Moly executes $US150m interim facility

Moly Mines Ltd has executed full financing documentation for the provision of a $US150 million interim debt financing facility with various funds associated with the Trust Company of the West.

Moly, which is focused on developing its Spinifex Ridge molybdenum project will issue notes with an aggregate principal value of $US150 million.

Under the agreements, MMA will draw down the $US150 million in two tranches with draw down of the first tranche of $US30 million completed. The second tranche of $US120 million is scheduled for draw down by the end of October, subject to the satisfaction of certain conditions precedent.

Dr Derek Fisher, CEO, commented "the successful execution of this funding arrangement is a strong endorsement of the Project and its world class fundamentals, and is particularly satisfying considering it was completed during a period of extreme turmoil in the global financial markets.

"The proceeds from the Interim Financing will provide the Company with funding to continue the development and construction of the Project whilst the Company completes full funding arrangements."

Upon the issue of Notes under the second tranche, Moly is obliged to issue Warrants to the Note subscribers equaling 15 per cent of the fully diluted issued capital of Moly (on a post Warrant issue basis) at that date.

The Warrants have a 10 year maturity and are exercisable into 1 new ordinary share in Moly for each Warrant held at an exercise price of $0.0001. The Notes are due for repayment in 12 months from the draw down of the second tranche.

Moly will issue the Warrants immediately upon the draw of the second tranche to the maximum capacity available under ASX Listing Rule 7.1. The balance will be issued upon shareholder approval at the Company's annual general meeting scheduled for November 27 2008. All Warrants issued will require approval of shareholders prior to their exercise. The Notes are secured by a full security and guarantee package.

About TCW

Founded in 1971, The TCW Group develops and manages a broad range of innovative, value-added investment products that strive to enhance and protect clients' wealth. The firm has approximately $130 billion in assets under management. TCW clients include many of the largest corporate and public pension plans, financial institutions, endowments and foundations in the U.S., as well as a substantial number of foreign investors and high net worth individuals.

TCW's Energy & Infrastructure Group is one of the leading providers of institutional capital to the energy sector globally with assets under management of approximately $7 billion and capital invested in more than 250 energy projects and companies in 27 countries. The Group has a 26-year track record in the industry and operates from offices in Los Angeles, Houston, New York, London and Sydney.

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