Moly Mines
Moly Mines (ASX/TSX:MOL), through it's 100% owned subsidiary Moly Metals Australia Pty Ltd, is the 100% owner of the Spinifex Ridge Molybdenum\Copper Project - the world's most advanced new primary molybdenum development project.
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Australia approves Sichuan Hanlong Group investment in Moly Mines
Perth-based Moly Mines (TSX/ASX: MOL) has confirmed the Australian Foreign Investment Review Board (FIRB) has no objections to Sichuan Hanlong Group US$200m deal to acquire majority control of Moly Mines.
FIRB approval was received in less than one month for its Australian subsidiary, Hanlong Mining Investment Pty Ltd to undertake the transaction.
The US$200 million deal to control Australia's biggest molybdenum mine is understood to be the biggest investment by a privately owned Chinese company in Australia.
Moly Mines CEO Dr Derek Fisher said it was a great outcome for our shareholders, and for Australia in general, as it is Hanlong’s intention to immediately organize the financing for the development of the Spinifex Ridge molybdenum mine.
“Spinifex Ridge will be Australia’s first major molybdenum mine and FIRB approval, which has been received less than a month after signing the Hanlong Agreement, is another major step toward that goal.”
Under the deal terms, Hanlong will acquire 207.1 million shares in Moly Mines for US$140 million.
"The Spinifex Ridge project has very good prospects. Based on the current molybdenum price, sales could total 10 billion yuan (US$1.5 billion) with 2 billion yuan profit when the project starts operating three years later," Hanlong said.
Hanlong said sales could total 10 billion yuan (US$1.5 billion) with a 2 billion yuan profit when the project starts operating three years later.
The project is also a huge iron mine Hanlong said.
It will provide Moly Mines with an interest bearing US$60 million 10‐year project loan and arrange debt financing for up to US$500 million by 30 June 2010 for the Spinifex Ridge Molybdenum Project.
It will receive 35.5 million unlisted C$1.00 options (3 year maturity) that vest on Hanlong successfully organizing the Project Finance Loan.
The FIRB approval is conditional primarily on Moly Mines shareholder approval and approval of various regulatory agencies of the People’s Republic of China.
A shareholder meeting to approve the Hanlong transaction will be held on 16 December 2009.
Other Moly Mines news
- Moly Mines gets Hanlong over the line as major shareholder
2010-04-23 - Moly Mines and Hanlong Mining inch closer to deal
2010-03-01 - Moly Mines progresses negotiations with Hanlong Mining Investment
2010-02-16 - Sichuan Hanlong Group given green light to invest $200 million in Moly Mines
2010-01-25 - Australia approves Sichuan Hanlong Group investment in Moly Mines
2009-11-19
