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PrintMoly Mines (ASX/TSX: MOL) advised that Hanlong Mining Investment Pty Ltd had become the Company’s controlling shareholder following the settlement of the US$200 million equity and debt funding on April 23th.
Hanlong has invested US$140 million for a 55% fully diluted interest in Moly Mines. In addition Moly Mines has fully drawn a US$60 million 10 year shareholder loan, provided by Hanlong at an interest rate of 10% per annum.
Moly Mines’ managing director Dr Derek Fisher said, “This considerable investment from a highly respected substantial private Chinese group and represents a key milestone in the development of the world’s next major primary molybdenum mine at Spinifex Ridge.”
“This is the first new large scale molybdenum mine in over 25 years. Hanlong have demonstrated a strong commitment to the molybdenum industry and together we look forward to building an international mining house, he said.”
Hanlong Managing Director, Dr Hui Xiao stated that, “Hanlong is delighted to complete its investment in Moly Mines and looks forward to working with the current Moly Mines board to develop the mine at Spinifex Ridge into a world class asset. This investment enforces our substantial commitment to investment in the Australian resources sector”.
Moly Mines has retired in full the balance outstanding on the Interim Financing Facility with Trust Company of the West, including the Early Repayment Fee described on 1 March 2010.
The balance of the Funding and existing Moly Mines cash will be applied to the re‐start of development activities for the Spinifex Ridge Molybdenum Project, in conjunction with the start‐up of mine site activities for the Spinifex Ridge Iron Ore Project.
In early May, a project finance team from Moly Mines and Hanlong will assemble in Chengdu, Sichuan, for the detailed negotiations for the US$500 million Spinifex Ridge Molybdenum Project Finance Loan Facility that is expected to be available for drawdown by 30 September 2010.
Moly Mines will add three Hanlong nominees as directors to the board of the company.
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