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PERTH (miningweekly.com) – ASX-listed Moly Mines this week reported that it would temporarily suspend its listing from the bourse, as it anticipated a failure to comply with listing rules.
The miner, which is also listed on the TSX, reported on Wednesday that it would not be able to meet the ASX’s six-month timeframe to secure a suitable new asset, after completing the mine gate sale agreement for iron-ore produced at the Spinifex Ridge mine, with Mineral Resources, in May, last year.
Under the agreement, Mineral Resources would operate the mine to the end of its mine life, while Moly Mines would retain all the tenements and its rights to its molybdenum/copper project, and could continue or restart work programmes at that project.
Moly had been hoping to complete a merger or acquisition agreement to conform to an ASX policy, which allowed companies that disposed of their main undertakings a six-month grace period within which to justify that they had a sufficient level of operations to justify a continued quotation on the bourse.
The company’s board had assumed that with its available funds and the number of opportunities under consideration, that it would be able to secure an asset in time to satisfy the ASX conditions.
However, the company said that despite conducting appropriate due diligence and acquisition negotiations, the company had been unable to secure a suitable asset, with the board saying that implementing an acquisition strategy would not be complete by April 22.
As such, the company was expecting that share trade would be temporarily suspended on April 22.
“Cash is king and patience is a virtue. We are very well positioned in the market to go for quality projects in accordance with our strategy. Every effort will be made to ensure we secure key assets best suited to the future growth profile of the company,” Moly Mines chairperson Nelson Chen said.
He noted that the company would remain as a listed entity on the ASX, and provided that it was able to start operations at a level adequate to justify the quotation of its shares, would seek to lift the share suspension.
In the meantime, Moly would continue to evaluate suitable investment opportunities, Chen said.
The junior’s shares dropped to a low of A$0.062 on Wednesday, down 34.7% on its opening price of A$0.095 a share.