Proactiveinvestors recommends
Additional Information
Market: TSX / ASX
Sector: General Mining
EPIC: MOL
Latest Price: 0.17  (4.69% Ascending)
52-week High: 1.06
52-week Low: 0.16
Market Cap: 63.51M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Moly Mines
www.molymines.com
Moly Mines Limited, through its 100% owned subsidiary Moly Metals Australia Pty Ltd, is the 100% owner of the Spinifex Ridge Molybdenum\Copper Project – the world’s most advanced new primary molybdenum development project.
Full Moly Mines profile here
Pdf

Moly Mines to restructure debt, paving way for Spinifex Ridge Mine Development

31st Aug 2009, 8:24 am by Andrew McCrea
Moly Mines to restructure debt, paving way for Spinifex Ridge Mine Development

Moly Mines (ASX/TSX: MOL) has reported that Trust Company of the West has agreed to restructure its debt facility with Moly Mines.

The one month extension of the US$150 million financing facility to 30 November 2009, provides time for final term sheet documentation.

Proposed terms are:

- US$140 million of notes will be extended with the coupon reduced to 15% and with varying maturities:
- US$20 million will be due 5 years from October 31, 2009;
- US$80 million will be due for repayment in 2 years from 31 October, 2009; and
- US$40 million will be due for repayment 18 months from 31 October, 2009
- US$43 million of notes and accrued interest will be retired from cash sources forecast to be existing as at the date of restructure;

TCW will be issued with 5,958,039 Warrants in the company at an issue price of A$0.0001 per Warrant maturing in 10 years as part consideration for completing the restructure.

Derek Fisher managing director of Moly Mines said the restructuring will relieve significant time and financial pressures on the company. And allow the company to develop the Spinifex Ridge mineral deposits in an orderly fashion.

Fisher said the term sheet is subject to undertaking a successful equity capital raising of a minimum of US$25 million.

He said these funds raised would be used primarily for the development of the Spinifex Ridge Iron Ore Project. Any surplus funds raised above this minimum level will be used to pay down the US$80 million of 2 year notes. 

Shareholders will be offered additional shares via a share purchase plan.

The company said after the restructure, the company will bring the Spinifex Ridge Iron Ore Project into production.

With the strengthening molybdenum market, final engineering and design work will be completed for the 10Mtpa molybdenum project whilst pursuing full project financing.

Spinifex Ridge molybdenum project is fully permitted, ready for construction with over A$100 million of long lead equipment manufactured and delivered to Perth.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.