Posted in | Copper | Molybdenum | Iron Ore

Moly Mines Financing Plans Falter

Moly Mines shares dropped sharply as it announced that its 55% Chinese shareholder, Hanlong Mining Investment, has stalled the financing for its flagship project.

Moly Mines is an ASX and TSX listed resource company mining Iron Ore in Western Australia, as well as focused on developing our world class Spinifex Ridge Molybdenum project - 170km east of Port Hedland.

Worse news was that the projected revenue from sales was also set to fall thanks to the rise of the Australian currency.

Moly Mines said that the strong Australian dollar could hurt revenue of its Spinifex Ridge project in Australia. The Molybdenum and Copper project has already seen its shares down by nearly 25 % for the mine. They closed at $ 1.10 yesterday.

The company secretary Andrew Worland said in a statement that the ability of the company to complete the Spinifex Ridge Molybdenum-Copper project financing process will likely be dependent on an improvement in both the foreign exchange outlook and molybdenum prices above current levels.

The non Hanlong directors of Moly Mines are now planning to seek legal advice as the access to a $US466 million ($468m) funding facility by the end of the month is being denied to Moly Mines by the Chinese company. The Toronto based company is hoping that the Hanlong Mining Investment Ltd will meet the 31 January deadline for releasing the funds and help the company.

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