Liezel Hill
TORONTO (miningweekly.com) – TSX- and ASX-listed Moly Mines expects to start mining activities in August at its Spinifex Ridge molybdenum project, in Australia, with ore processing scheduled to begin in October.
The company, which is also preparing to build a molybdenum mine at Spinifex Ridge, has recently been recapitalised, thanks to a $200-million equity and debt funding deal completed by China's Hanlong Mining Investment.
Site construction work is under way for the iron ore project, after the company received confirmation that the Utah Point export facility is progressing and will be ready to receive Spinifex ore from October 31, Moly said in a statement on Wednesday.
The first tender package has been awarded for water delivery to site from the De-Grey borefield, 60 km north of Spinifex Ridge.
A number of construction contracts are also being finalised for award and tender packages for mining, crushing and haulage services are almost ready, the company reported.
Iron-ore sales arrangements will be finalised after the final mine plans, designs and metallurgical test work is completed.
Moly also reported that negotiations on a $500-million project finance loan facility are “progressing” and that term sheets should be finalised by the end of June.
As part of the agreement between the two firms, agreed to help arrange a further $500-million for the Spinifex Ridge molybdenum project, and representatives from Hanlong and Moly met last week with key executives of the Chinese financial institutions that are preparing to provide the loan facility.
Full legal documentation will be drawn up during the third quarter, the company said.
Edited by: Liezel Hill
Sourced from www.miningweekly.com
