Moly Mines has signed project debt agreements valued at $494m with the China Development Bank Corporation (CDB) for the construction of the Spinifex Ridge molybdenum/copper mine in Western Australia.

Moly Mines will also receive a $6m loan from Hanlong Mining Investment over the coming months to fulfil Hanlong’s $500m commitment to Moly Mines.

The total capital and owner’s costs for the project are estimated to be $720m based on the engineering, procurement and construction contract awarded in May this year.

The company said in a statement that it will need additional funds to ensure the project is fully financed.