UPDATE 1-Moly Mines gets $250 mln China fund for Australia mine

Mon Jan 31, 2011 11:09am EST

* Says receives China Development Bank commitment letter

* China EXIM Bank to bring more funds after China New Year

* Shares up 7 percent

Jan 31 (Reuters) - Moly Mines (MOL.AX) MOL.TO said it received a commitment letter from China Development Bank (CDB) for up to $250 million for its Spinifex Ridge molybdenum/copper project in Western Australia, sending its shares up 10 percent.

The company, which explores and develops base and precious metals, said the financing will be applied toward half of the planned $466 million facility.

Moly Mines said in a statement its major shareholder Hanlong has advised it that a commitment letter for the other half of the planned facility is expected from the China Export and Import Bank after the Chinese New Year.

Shares of the Perth-based company were up nearly 7 percent at C$1.22 on Monday morning on the Toronto Stock Exchange. (Reporting by Amruta Sabnis in Bangalore; Editing by Joyjeet Das)