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Additional Information
Market: TSX / ASX
Sector: General Mining
EPIC: MOL
Latest Price: 0.33  (1.54% Ascending)
52-week High: 1.15
52-week Low: 0.30
Market Cap: 127.02M
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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
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Hanlong moves closer to control of Moly Mines

25th Jan 2010, 9:07 am

Sichuan Hanlong Group has been given a green light from a regulatory wing of China's government to make a US$200-million controlling investment in Moly Mines Ltd (ASX/TSX: MOL).

The dual listed molybdenum miner said Friday that permission from China's National Development Reform Commission is a critical step towards getting other required regulatory approvals.

Moly is working with Hanlong and other Chinese domestic banks to secure $500 million in financing to develop the Spinifex Ridge Molybdenum Project in Australia.

Molybdenum is a silvery-white base element primarily used as an alloy in stainless steel.

Moly Mines also said China's Ministry of Commerce is currently reviewing the application and is expected to announce its decision within two weeks before handing the case to the State Administration of Foreign Exchange.

The company added that it may be forced to extend the cut-off date for the transaction because the approvals may be delayed by the Chinese New Year in February.

Sichuan Hanlong's investment in Moly is expected to be completed through its Australian subsidiary, Hanlong Mining Investment Pty Ltd.

Hanlong has investments in mining, electricity production, infrastructure development, pharmaceuticals, real estate, tourism and environmental technology.

China’s Commerce Ministry and State Administration of Foreign Exchange still need to approve the project, which will result in Sichuan-based Hanlong owning more than 51% of Moly.

Moly shares rose 2% to 96 cents in Toronto morning trading.

 

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