from cdn blog, page-7

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BEIJING, Mar 30, 2010 (AsiaPulse via COMTEX) --
The Export-Import Bank of China announced on Monday it is to lend US$140 million to the private Chinese company Sichuan Hanlong Group.

The money will be used to fund the group's purchase of a 55.3 per cent controlling stake in the Australian molybdenum mining company Moly Mines (ASX:MOL), National Business Daily reported on Tuesday.

Hanlong, headquartered in southwest China's Sichuan Province, signed a US$200 million acquisition agreement with the Perth-based explorer in October 2009, under which Hanlong will get 207.1 million shares of Moly Mines for US$140 million, at a price of 74.7 cents per share.

Meanwhile, Hanlong will also provide Moly Mines with an interest-bearing 10-year loan of US$60 million.

Under the deal, Hanlong will possess Moly Mines' Spinifex Ridge Molybdenum Project, which is one of the world's largest maiden molybdenum and copper resources. The project has confirmed reserves of 218,000 metric tons (tonnes) of molybdenum, 368,000 tonnes of copper, and over 7.3 million tonnes of iron ore at 59 per cent grade, an there is further potential for these figures to increase.

Hanlong said on Monday it would provide a further US$500-600 million to finance the development of the Spinifex Ridge project.

It is the largest overseas investment by a Chinese private firm by far.

Hanlong also said it agreed earlier this month to buy 25 per cent stake in General Moly Inc. of the United States for US$80 million, and become the latter's largest shareholder.

Chinese private firm Hanlong is becoming a leading company in the world's molybdenum industry.