Perth, Feb 11, 2006 AEST (ABN Newswire) - Moly Mines Limited (ASX: MOL) is pleased to announce that through its wholly owned subsidiary Moly Metals Australia Pty Ltd it has exercised its option to acquire additional interest in the Spinifex Ridge Molybdenum ("Mo") / Copper ("Cu") Project in the Pilbara of Western Australia with the payment of $750,000 to Kallenia Mines Pty Ltd ("Kallenia").
By exercising the option, Moly Mines holds a 90% interest in the Spinifex Ridge tenement, being Exploration Licence E45/2226 and associated mining lease applications. The transaction completes on 16 February 2006.
The option exercise reflects the Board's confidence in this substantial project as the Company finalises details of the Pre-Feasibility Study ("PFS"). Managing Director Dr Derek Fisher noted that taking control of the Project tenement was an important step as it progresses the Project through to a development decision. "With native title negotiations over the granting of mining leases and other project approvals well advanced, securing our interest in the tenement represents a significant project milestone." Dr Fisher said.
As mentioned in the December 2005 Quarterly Activities Report, results of the recently completed PFS are being compiled and it is expected those results will be released to the market during February.
The exercise is pursuant to the Option Agreement dated 1 April 2004 between Moly Mines Limited's 100% owned subsidiary Moly Metals Australia Pty Ltd and Kallenia. Completion of the exercise will occur within 5 business days.
Kallenia retains a free-carried 10% interest in the Spinifex Ridge tenement until a decision to mine is made by Moly Mines.
Contact
Telephone +61 8 9388 5000
Facsimile +61 8 9388 5099
Email info@molymines.com
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