Moly Mines has entered a trading halt as it prepares to raise at least $US25 million ($A30 million), a condition of its debt restructure conditions.
In a statement to the local stock exchange, the company said it is in the final stages of completing documentation for the capital raising, with funds to be raised through a global institutional placement over the next 15 days.
The capital raising forms part of a number of conditions over a restructure deal with Los Angeles-based financier Trust Company of the West.
Both companies have also agreed to extend the deadline for a $US150 million interim financing facility by one month to the end of November.
Additionally, Moly has agreed to develop its Spinifex Ridge iron ore project in the Pilbara first, which is estimated to cost $9.4 million.
Moly will continue to pursue plans to progress its flagship Spinifex Ridge molybdenum project.
The company will also conduct a share purchase plan for shareholders.
Shares in Moly last traded at $1.36 each.
