Moly Mines Limited announces that it is undertaking a US$150m interim financing for its planned 20m tpa Spinifex Ridge molybdenum-copper project in the Pilbara district of Western Australia.

Moly Mines has mandated a North American institution to complete detailed due diligence with a view to making an offer of finance and achieving financial close by mid September.

The funds from the interim financing will be used to continue the rapid advancement of the Spinifex Ridge project execution and construction schedule.

The execution of the engagement letter coincides with approval of environmental conditions and procedures for the development of the project from the Western Australian State Government Minister for the Environment, the Honourable David Templeman MLA.

The board of Moly Mines says it recognises the dedication and quality of work of the company’s environmental team and thanks the various stakeholders for their engagement and assistance in the approvals process. The company is now making final preparations for the commencement of site construction activities which includes lodgement of environmental bonds.

Moly Mines, in conjunction with its advisors, continues to progress a variety of full project financing alternatives from the capital markets and is in advanced discussions with a number of potential strategic investors. Financial modelling shows the project can carry significant debt. The company continues to target at least a two thirds debt/one third equity financing for the project and will continue to keep the market informed as it progresses its full funding programme. – Press Release