Chinese group confirmed as Moly Mines big brother

Moly Mines Ltd (ASX & TSXL MOL) confirmed that Hanlong Mining Investment...

Moly Mines Ltd (ASX & TSXL MOL) confirmed that Hanlong Mining Investment Pty Ltd had become controlling shareholder, following settlement of a $US200 million equity and debt funding.Managing director Dr Derek Fisher said this association represents a milestone for the development of one of the world’s "next major primary molybdenum mine" at Spinifex Ridge in the hinterland of Western Australia’s Pilbara region.Hanlong has invested $US140 M for a 55% fully diluted interest in the company, while Moly Mines has fully drawn a $US60 M 10-year shareholder loan, provided by Hanlong.Fisher said the company has retired the full balance outstanding on an interim finance facility.The chairman of Hanlong Sun Xiaodong and two other executives of the company, Liu Han and Steven Xiao have joined the Moly Mines board.Development of Moly Mines was expected to cost $US500 M.The resource data base Intierra Resource Intelligence says that Spinifex Ridge has a proven-probable reserve of 450.8 million tonnes grading 0.048% moly, 0.081% copper and 1.285 grams/tonne silver.