Shares in Moly Mines Limited (ASX: MOL) leaped in value 13.47% to $1.39 on news it had received a $700 million funding injection from a Chinese investment firm.
Hanlong Mining Investment has agreed to provide $200 million in equity and debt funding for Moly Mines, and $500 million debt funding for the company’s Spinifex Ridge Molybdenum/Copper project.
CEO Derek Fisher said the agreement could allow the company to clear its existing debt and build its Spinifex Ridge project significantly ahead of schedule.
But the deal could be stymied by the Foreign Investment Review Board, because as it stands it would increase Hanlong’s holding to over the 50% threshold. The Board has stated it prefers to keep foreign investments in Australian companies at or below 49.9%.
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