finance update

MOLY Mines’ Spinifex Ridge molybdenum project in Western Australia’s Pilbara has received a boost after the company announced a North American institution would carry out due diligence on financing US$150 million ($A169.6 million) for Moly’s flagship project.



Moly Mines drilling at Spinifex Ridge


The Perth-based company said in a statement that the unnamed institution would offer the $150 million in interim finance if due diligence was successful, and financial close is expected by mid September.

“The funds from the interim financing will be used to continue the rapid advancement of the project execution and construction schedule,” Moly said.

The company continues to progress a variety of full project financing alternatives from the capital markets and was in advanced discussions with potential strategic investors.

“We are certainly confident that we will have our full project funding by the end of this calendar year,” Moly Mines company secretary Andrew Worland told MiningNews.net.

“We are investigating a number of alternatives. Obviously the high yield bond market has been our focus over the last 12 months since we completed our feasibility study and that’s gone through a rather uncertain period.

“We are certainly fully investigating the project finance markets as well and, in combination with that, we are continuing to seek the strategic investor that can help us provide the full equity funding for the project.”

Meantime, Moly has received approval from WA Environment Minister David Templeman for environmental conditions and the project’s development procedures.

Moly is making final preparations for the start of site construction activities including the lodgement of environmental bonds.

Shares in Moly have slipped 17c to $2.29 in morning trade.