Moly Mines’ biggest lender, US investment fund Trust Company of the West, has quit its seat on the board of the molybdenum and iron ore hopeful, less than six months before repayment of the $US150 million ($194.3 million) is due.
Moly said yesterday Kurt Talbot’s sudden resignation was because of the Trust Company executive’s business commitments and did not signal a sudden lack of a confidence.
The Trust Company facility was finalised last September and almost immediately fully drawn down by cash-strapped Moly, triggering the 12-month repayment deadline which is due in October.
Moly is understood to remain confident of refinancing the Trust Company debt, given its decision to place the ambitious Spinifex Ridge molybdenum project in the Pilbara on care and maintenance and instead focus on generating much-needed cash sooner from iron ore opportunities nearby.
The WA junior released more positive drilling results from the Spinifex Ridge iron ore project yesterday, including intercepts of between 40m and 62m grading around 62 per cent and 64 per cent iron.
Moly is targeting an iron ore resource of up to seven million tonnes which would be enough to justify a one million tonne-a-year operation.
Moly shares firmed 0.5¢ to 42¢.
• Former Woodside executive David Craig has replaced retired Moly nonexecutive chairman Paul Willis.
MOL Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
