*** NOT FOR DISTRIBUTION
TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES ***
Adanac CLOSES BRIDGE FINANCING
May 27, 2008 - Vancouver,
British Columbia
Dr. David Stone, CEO, reports:
ADANAC MOLYBDENUM CORPORATION CLOSES THE PREVIOUSLY ANNOUNCED BRIDGE
FINANCING PRIVATE PLACEMENT; PROCEEDS TO BE USED TO PARTIALLY FUND EQUIPMENT
PURCHASES, DETAILED ENGINEERING, CONSTRUCTION PLANNING AND CORPORATE OVERHEAD
FOR THE DEVELOPMENT OF THE PROPOSED RUBY CREEK PROJECT.
Adanac Molybdenum Corporation (TSX: AUA) (Pink Sheets:
AUAYF) (Frank: A9N) (�Adanac� or the
�Company�) today confirmed it has
closed the previously announced financing. At closing, the Bridge Financing
will be funded to $68.5 million. The Company has the option to increase the
Bridge Financing up to a total of $80 million at any time prior to May 30, 2008..
The proceeds will be used to fund continued development of the company�s
proposed Ruby Creek molybdenum project.
The financing is in the
form of senior secured notes issued pursuant to a Securities Purchase Agreement
signed on 23 May, 2008. The agreements related to the financing will be filed
on SEDAR. Under the terms of the financing the Company will grant, in total, warrants to
subscribe for a number of shares of Common Stock equal to 21.4054% of the
fully-diluted outstanding shares of Common Stock of the Company. The Warrants
will expire the earlier of either three (3) years after the closing by the
Company of the contemplated raise to secure the balance of the financing to
build the project in convertible debt and/or high yield debt, or five (5) years
from the date of issuance.
This financing was arranged through Adanac�s United
States based investment banker and includes participation from
leading global institutional investors. Securing the balance of the funds
required to build the mine, mill and related infrastructure is scheduled to be
completed by the fourth quarter of 2008.
�This financing enables Adanac to continue its engineering and
construction planning activities and take possession of processing equipment we
have ordered for the molybdenum mine. It represents a strong vote of confidence
from the financial market for building the project.� said Dr. David Stone, CEO.
Adanac
Molybdenum Corp. is engaged in the exploration and development of mines to
produce molybdenum and other ferro-alloy
metals. Its flagship property is the Ruby Creek molybdenum project located near
Atlin, BC.
The property contains an open pit reserve of 157.7 million tonnes grading
0.058% Mo using a 0.040% cut-off grade. This news release has been reviewed by
Michael MacLeod, P.Eng.
a
qualified person pursuant to National Instrument 43-101 and the President and
Chief Operating Officer, of the Company.
On Behalf of Management
ADANAC MOLYBDENUM CORPORATION
David Stone
Chief Executive Officer
Information Contact
David Stone
CEO
Head Office: Suite
200 � 2055 152 Street, Surrey,
B.C. V4A 4N7
� Telephone: 604-535-6834 Facsimile:
604-536-8411
Corporate Office: 2A 15782
Marine Drive, White Rock, B.C. V4B 1E6
� Telephone: 604-531-9639 Facsimile:
604-531-9634
Email: info@adanacmoly.com
This release is not an offer of securities for sale in
the United States.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
www.adanacmoly.com