Moly secures $US500m for Spinifex Ridge

Moly Mines has secured $US500 million in financing arrangements to fund the construction of its Spinifex Ridge molybdenum-copper project near Port Hedland.

Moly announced today it would borrow the majority of the funds from China Development Bank Corporation in the form of a $US454 million syndicated facility and a $US40 million working capital facility.

Hanlong Mining Investment will also provide a $6 million loan to Moly over the coming months as part of its $US500 million commitment announced in December last year.

"Our partnership with CDB and Hanlong provides a major piece of non-dilutionary capital on terms that are unachievable and unavailable from western banks," Moly Mines chief executive Derek Fisher said.

"It provides a foundation for substantial growth for the company and I thank the Hanlong team for their continued support of Moly Mines."

Moly estimates the total capital cost of Spinifex Ridge to be around $US720 million, and said it was in discussions with Hanlong regarding securing the additional funds.

At 9:35AM (WST) Moly Mines shares had gained 5.8 per cent, to trade at 81.5 cents.