UPDATE 1-Moly Mines Says Hanlong to Invest in Company in April

Mar. 25 -- Australian base-minerals explorer Moly Mines Ltd (MOL.AX: Quote) (MOL.TO: Quote) said China's Hanlong Mining Investment Pty Ltd plans to invest $200 million in the company in the second half of April 2010.

The equity-and-debt investment will make Hanlong a major shareholder in Moly Mines.

On March 15, the metal explorer said Hanlong had received the final Chinese government approval for the investment.

Moly Mines had said it will issue 207.1 million shares for $140 million and 35.5 million project finance options to Hanlong. The metal explorer will also receive a 10-year $60 million working capital facility from Hanlong.

Moly Mines, which was also working with Hanlong and Chinese domestic banks to secure a $500 million loan for its Spinifex Ridge Molybdenum project, said on Wednesday the project finance loan facility is expected to be available for drawdown by Sept. 30.

Shares of Moly Mines were down 2.5 percent at 78 Canadian cents in morning trade on the Toronto Stock Exchange.