05/08/2009 - 11:29

Moly shares jump before trading halt

05/08/2009 - 11:29

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Shares in Moly Mines surged 42 per cent before being placed in a trading halt pending an announcement by the start of trade on Friday.

Shares in Moly Mines surged 42 per cent before being placed in a trading halt pending an announcement by the start of trade on Friday.

Moly's share price last traded at $1.15, up 31 cents from yesterday's close.

Moly has experienced a surge in the volume of shares traded since Monday with an average of around 2 million shares swapping hand compared to an average of around 400,000.

Before the trading halt was called today, more than 3.4 million shares were traded.

Earlier this week, Moly warned its future depended on the success of debt restructure talks over a $US150 million facility, due for repayment by the end of October.

The company said it had started restructure talks with its lender, Trust Company of the West.

Moly has also been on the hunt for a project with short-term cash-flow potential to ease its debt pressures.

The company has stepped up focus on the Spinifex Ridge iron ore project in the Pilbara and there is speculation that Chinese companies are circling the project.

Moly's flagship asset, the Spinifex Ridge molybdenum project, has been put on hold as it waits for the molybdenum market to improve.

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