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Moly plans raising, restructures debt

MOLY Mines has revealed plans to raise at least $30 million as part of debt restructure plans and to fund the $10 million development of its iron ore deposit while it progresses its Spinifex Ridge molybdenum project.

The capital raising is a condition of a proposed debt restructure agreement with financier, Los Angeles-based Trust Company of the West.

Moly Mines chief executive Derek Fisher said the company expected to raise more than $30 million. Funds not needed for the planned iron ore development would be used to repay debt.

Moly Mines had drawn down all its $217.15 million in loan facilities at the end of June and held $64 million in cash.

The company and TCW have agreed to extend the maturity date of a $US150 million ($A179 million) interim financing facility by one month to November 30.

The company had previously aimed to start mining molybdenum at Spinifex Ridge, near Marble Bar, by mid-2009.

But it has decided to initially mine iron ore, which is also present at the project, after a sharp fall in the molybdenum price.

Mr Fisher said TCW might accept a stake in Moly Mines as payment for some of the debt.

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