General Moly Announces Financing Update
General
Moly, Inc. (the 'Company') (NYSE MKT: GMO)(TSX: GMO), a U.S.-based
molybdenum mineral development, exploration and mining company has been
informed that legal counsel has suspended work on the $665 million
Chinese sourced Term Loan that is currently being negotiated with China
Development Bank ('CDB?) for the development of the Mt. Hope Project
until further notice. This suspension of activities relates to media
reports that Mr. Liu Han, Chairman of Sichuan Hanlong Group ('Hanlong?)
has reportedly been detained by Chinese authorities. Hanlong or an
affiliate is obligated to arrange and guarantee the Term Loan,
throughout its life.
General Moly is seeking clarification from Hanlong as to the
implications for the Company and will advise the market should these
enquiries render any relevant information.
Bruce D. Hansen, Chief Executive Officer of General Moly, said 'We have
been making good progress negotiating the Term Loan and are disappointed
that this work has been suspended until further clarification is
received from Hanlong. We hope to re-establish Term Loan negotiations
with Hanlong and CDB in the near-term, but will concurrently assess
other financing alternatives.'
* * * *
General Moly is a U.S.-based molybdenum mineral development, exploration
and mining company listed on the NYSE MKT (formerly the NYSE AMEX) and
the Toronto Stock Exchange under the symbol GMO. Our primary asset, our
interest in the Mt.
Hope ?Project located in central Nevada, is considered one of
the world's largest and highest grade molybdenum
deposits. Combined with our second molybdenum property, the Liberty
project that is also located in central Nevada, our goal is to become
the largest pure play primary molybdenum producer in the world. For more
information on the Company, please visit our website at http://www.generalmoly.com.
Forward-Looking Statements
Statements herein that are not historical facts are 'forward-looking
statements? within the meaning of Section 27A of the Securities Act, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended and are intended to be covered by the safe harbor created by
such sections. Such forward-looking statements involve a number of risks
and uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected, or implied by the Company.
These risks and uncertainties include, but are not limited to, metals
price and production volatility, global economic conditions, currency
fluctuations, increased production costs and variances in ore grade or
recovery rates from those assumed in mining plans, exploration risks and
results, political, operational and project development risks, including
the Company′s ability to obtain required permits to commence production
and its ability to raise required financing, adverse governmental
regulation and judicial outcomes, including recent request for
preliminary injunction and appeal of the ROD. The closing of the Hanlong
transaction and obtaining bank financing are subject to a number of
conditions precedent that may not be fulfilled. The bank financing and
subordinated loans are subject to final negotiation and satisfaction of
conditions precedent. For a detailed discussion of risks and other
factors that may impact these forward looking statements, please refer
to the Risk Factors and other discussion contained in the Company′s
quarterly and annual periodic reports on Forms 10-Q and 10-K, on file
with the SEC. The Company undertakes no obligation to update
forward-looking statements.
General Moly
Investors:
Scott Kozak,303-928-8591
skozak@generalmoly.com
or
Media:
Zach
Spencer, 775-748-6059
zspencer@generalmoly.com
or
Website:
http://www.generalmoly.com
info@generalmoly.com