Moly Mines to have $80M in cash and liquid assets after iron ore...

Moly Mines to have $80M in cash and liquid assets after iron ore sale
Wednesday, June 26, 2013 by Proactive Investors


Moly Mines to have $80M in cash and liquid assets after iron ore sale

Moly Mines' (ASX:MOL) will be cashed up holding $80 million in cash and liquid assets following the iron ore sale from its Spinifex Ridge mine to Minerals Resources (ASX:MIN).

The cash is equivalent to about $0.21 per share on a fully diluted basis.

The sale agreement became unconditional following approval from Moly shareholders.

Under the agreement between the two companies, Moly Mines' wholly owned subsidiary Moly Metals Australia was to sell ore from the Spinifex Ridge iron ore mine to Minerals Resources at the mine gate for an estimated $38 million.

The payment will be made in two instalments with a substantial upfront payment in cash and a final payment once the economic life of the mine is exhausted.

Once the transaction is done, cash is likely to be use for mergers and acquisitions.

http://www.proactiveinvestors.com.au/companies/news/44879/moly-mines-to-have-80m-in-cash-and-liquid-assets-after-iron-ore-sale-44879.html