Moly Mines plunges as suspension from ASX trading looms

Moly cashed up at A$80 million last year after the sale of Spinifex Ridge Iron Ore Mine was complete.

Canadian Moly Mines (TSX, ASX:MOL) shares fell almost 26% in Sydney Wednesday after the company announced it expects be suspended from trading later this month, as it anticipates a failure to secure a suitable new asset and so comply with listing rules by April 22.

The company said it had missed a six-month window set out by the Australian Securities Exchange to prove sufficient operational activity after the company disposed its main undertaking, Spinifex Ridge iron ore mine.

The exchange allows companies that have disposed of their main undertakings a six-month period within which to satisfy ASX that the company has a sufficient level of operations to justify continued quotation of the company’s securities on the ASX.

“Cash is king and patience is a virtue,” said in the statement Chairman Nelson Chen. “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.”

The company also announced that acting CEO David Pass would be replaced Graeme Kininmonth, currently health, safety and environment manager. Riccardo Vittino, in turn, will take over Allen Howells as acting CFO.

Shares in the company were down in Toronto as well this morning, hitting an almost 17% drop to 0.0750 by 10:38 ET.