Adanac Molybdenum secures $80M in interim financing

Shares in Adanac Molybdenum Corp. (TSX:AUA) rose almost 56 per cent Wednesday after the metals miner announced it has secured an offer for $80 million in bridge financing.

Adanac said it has signed a term sheet with an unidentified "leading global institutional investor" for financing to fund continued development of its proposed Ruby Creek molybdenum project in northern British Columbia.

"This financing would advance our Ruby Creek project to the next level," chief executive David Stone said in a statement.

"The funding would enable Adanac to continue its engineering and construction planning activities and take possession of processing equipment we have ordered for the molybdenum mine."

The proposed issue of senior secured notes is expected to be completed in mid-May, pending regulatory approval, due diligence by the investor and a definitive agreement.

Adanac embarked on a $750-million debt and equity financing initiative for the mine last October and expects to complete its financing this summer.

Adanac stock, which was halted pending announcement of the financing, gained 33 cents to close at 92 cents Wednesday, in heavy trading of 2.9 million shares on the Toronto Stock Exchange.

On Thursday, that price fell 9 cents to 83 cents.

The company's shares have traded in a 52-week range between 51 cents and $2.67.