TORONTO (miningweekly.com) – Cash-strapped Adanac Molybdenum has been granted an extension to a stay period under the Companies' Creditors Arrangement Act, until April 2, the company announced on Monday.

On December 19, Adanac was granted CCAA protection for an initial period of 28 days, expiring January 16, 2009, and the firm said at the time that it was exploring a number of alternatives, including putting the company or its assets up for sale.

Adanac owns the Ruby Creek molybdenum project, in British Columbia, and has completed a feasibility study on the project and begun ordering long-lead equipment.

The firm arranged an $80-million bridge loan, and had planned to raise project financing by the end of last year for the C$647-million mine.

Construction was scheduled to begin in February, with the first production expected in 2010.

However, after molybdenum prices dropped sharply and credit markets dried up, the firm was unable to raise the necessary funds, and sought creditor protection in December.

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