Sichuan Hanlong Group has been given a green light from a regulatory wing of China government to make a USD 200 million controlling investment in Moly Mines Limited.

The dual listed molybdenum miner said that permission from China's National Development Reform Commission is a critical step towards getting other required regulatory approvals.

Moly is working with Hanlong and other Chinese domestic banks to secure USD 500 million in financing to develop the Spinifex Ridge Molybdenum Project in Australia.

Moly Mines also said that China's Ministry of Commerce is currently reviewing the application and is expected to announce its decision within two weeks before handing the case to the State Administration of Foreign Exchange.

The company added that it may be forced to extend the cut-off date for the transaction because the approvals may be delayed by the Chinese New Year in February.

China's Commerce Ministry and State Administration of Foreign Exchange still need to approve the project, which will result in Sichuan based Hanlong owning more than 51% of Moly.

(Sourced from www.proactiveinvestors.com)