TCW exercises 19 million Warrants
TORONTO, ONTARIO -- (Marketwire) -- 05/27/11 -- Moly
Mines Limited (TSX:MOL)(ASX: MOL) welcomes funds
associated with EIG Global Energy Partners (EIG) (previously Trust Company of
the West) to the register of Moly Mines. EIG have
exercised 19 million warrants in Moly Mines yesterday
and accordingly Moly Mines has issued 19 million
fully paid ordinary shares to those warrant holders.
EIG's holding represents 4.9% of the
issued capital of Moly Mines. The share issue
coincides with Moly Mines shareholders re-appointing
EIG's nominee Mr Andy Zhmurovsky
to the Board of Moly Mines at yesterday's annual
general meeting in Perth.
EIG's warrant holdings arose under
the US$150 million Interim Financing facility entered into in September 2008. A further 4.9 million warrants remain outstanding.
US$500 million Project Finance
Facility Update
Moly Mines can also confirm that it has
been advised by the China Development Bank ("CDB") that their credit
approval process for a revised US$494 million in project finance facilities to
develop the Spinifex Ridge Molybdenum / Copper mine
has been completed.
The structure of the facilities
continues to evolve. CDB's revised commitment is for a US$454 million twelve
year project finance facility and an additional US$40 million in working
capital facilities. Hanlong has advised that an
additional US$6 million will be advanced separately to Moly
Mines to meet their commitment to procure US$500 million in project finance
facilities.
CDB has confirmed that the
previously announced deadline of 7 July 2011 for completion of documentation
and first drawdown no longer applies. However CDB, Hanlong
and Moly Mines remain focused on completing the main
finance facility loan documents as soon as possible and meeting conditions
precedent to first drawdown as soon as practical thereafter.
This news release includes
"forward-looking statements" as that term within the meaning of
securities laws of applicable jurisdictions. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that are in some cases
beyond Moly Mines' control. These forward-looking
statements include, but are not limited to, all statements other than
statements of historical facts contained in this news release, including,
without limitation, those regarding Moly Mines'
future expectations. Readers can identify forward-looking statements by
terminology such as "aim," "anticipate,"
"assume," "believe," "continue,"
"could," "estimate," "expect,"
"forecast," "intend," "may," "plan,"
"potential," "predict," "project,"
"risk," "should," "will" or "would" and
other similar expressions. Risks, uncertainties and other factors may cause Moly Mines' actual results, performance, production or
achievements to differ materially from those expressed or implied by the
forward-looking statements (and from past results, performance or achievements).
These factors include the failure to complete and commission the mine
facilities, processing plant and related infrastructure in the time frame and
within estimated costs currently planned; variations in global demand and price
for molybdenum and copper; fluctuations in exchange rates between the U.S.
dollar and the Australian dollar; failure to recover the resource and reserve
estimates of the Project; the failure of Moly Mines'
suppliers and service providers to fulfill their obligations under construction,
supply and tolling agreements; unforeseen geological, physical or
meteorological conditions, natural disasters or cyclones; changes in the
regulatory environment, industrial disputes, labor shortages, political and
other factors; the inability to obtain additional financing, if required, on
commercially suitable terms; and global and regional economic conditions.
Readers are cautioned not to place undue reliance on forward-looking
statements. We assume no obligation to update such information.
Contacts:
Moly Mines Limited
Natalie Frame
Investor Relations
+1 416 777 1801
+1 416 371 7541
Moly Mines Limited
Derek Fisher
Managing Director
+61 8 94293300
www.molymines.com