Adanac Molybdenum Plans Possible Liquidation of Assets

Adanac Molybdenum Corp. (TSXV:AUA.V) announced that it plans to liquidate its assets and return the net proceeds to its shareholders if no suitable third-party investor emerges in the near term. The company has been trying for the last to years to sell all or part of its Ruby Creek project or the company.

Reasons Ruby Creek offers “significant” investment potential include:

• Ruby Creek is 100% owned, with no carried interests, royalties or off-take arrangements.
• Ruby Creek is fully permitted for construction and nearly fully permitted for operation.
• The NI 43-101 compliant May 2009 Resource Statement outlined a Measured and Indicated resource of 275.4 million tonnes grading 0.067% molybdenum. The 407.9 million pound M&I resource represents a 38% increase over the 2007 Resource Update.
• The now out-of-date December 2007 Feasibility Study needs to be updated to reflect this significant 38% increase. Additionally, molybdenum prices, while currently depressed, have the potential to improve significantly, including as a result of the increase in oil and natural gas drilling and pipeline construction. Project economics hold the potential for other improvements, including the substitution of liquefied natural gas for diesel to power operations.
• The May 2009 Resource Statement and December 2007 Feasibility Study encompass significant amounts of information about drilling, assaying, metallurgical test work, environmental studies and permitting, garnered over more than twenty years.
• Metallurgical test results demonstrate that Ruby Creek molybdenum concentrate will meet or exceed the content specifications required by toll roasters.

Click here to read the full Adanac Molybdenum Corp. (TSXV:AUA.V) press release.