From Friday West Australian Newspaper! ---------------
It appears my original post of this thread was not far off the mark.
IRON ORE SALE PLAN TO FUND MOLLY MINES ---- (EXTRACTS.)
Moly previously said it intends to fund mine by two-thirds equity and one-third debt. Market turbulence delayed funding deal from initial deadline of March 31. Now hopes to have finance in place by September.
" -- I'd be happier selling equity in the project than equity in the company." --- (well done previous post that indicated this was to be the WAY by reference to an Internet site)
Moly is eyeing a third party deal over its iron assets that could circumvent tough equity markets to fund $1.1 billion mine. Director said focus is on Molybdenum mine - eager to bring partner on board to advance iron prospects. Iron is a non core asset. Would consider selling resources "or, well there is a variety of ways." It's a pity exploration - drilling is not more advanced.
MY THOUGHTS. A selling off, or other similar approach, of iron resources would need much time. Much time to prove extent of resources and legal matters. Although a large deposit as an expression of interest would be welcome.
On the other hand management is obviously bogged down in efforts to obtain finance. The selling of equity in the project approach is the way to go. Perhaps a selling of equity in the project and selling of equity in the company might need to be combined. Selling equity in the company - share price being what it is - would be a bargain for the financier - not so good for present shareholders.
TOUGH! Management appears to be making the best of a difficult situation.
Patience required - and those steel balls.
MOL Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
