Developer of its Spinifex Ridge Molybdenum Project, Moly Mines Ltd
(ASX:MOL) says it is close to completing documentation for a minimum US$25 million global institutional share placement as a condition of the restructure of its interim financing facility with US investment firm Trust Company of the West.
On Monday the company announced that the Trust Company of the West had approved a one month extension to the maturity for its $150 million interim financing facility to November 30 2009.
The extension is subject to a number of conditions including undertaking a successful equity capital raising of a minimum of US$25 million to be used to develop Moly Mines Spinifex Ridge Iron Ore Project.
According to the Australian Financial Review, Moly Mines managing director Derek Fisher says the company is looking to raise more than US$25 million in its raising if it can, aiming for a target amount of $100 million.
The Financial Review says Mr Fisher expects solid demand for the stock following a recent recovery in the price of molybdenum and since China has moved from supplier to net importer.
Moly Mines posted a profit in 2008 after losses the four years previous.
