General Moly Announces Hanlong's Signing of Memo of Cooperation with EXIM Bank of China
General Moly (NYSE Amex: GMO) (TSX: GMO) announced that the Company has
been informed by Sichuan Hanlong Group (Hanlong) that Hanlong has signed
a memo of cooperation over the past weekend with the Export-Import Bank
of China, Chengdu branch (CEXIM). The agreement is focused on CEXIM
providing up to $1.5 billion in loans to Hanlong to support its
investment in overseas mining opportunities.
Under the previously-announced transaction between Hanlong and General
Moly, Hanlong will provide a total of $745 million in financing to
General Moly including a $665 million bank loan Hanlong will source and
guarantee. In addition, Hanlong will purchase a 25% fully-diluted
interest in the Company for $80 million in two equal tranches. The first
$40 million will be invested for a 12.5% interest in General Moly on
December 20, 2010 while the second $40 million will be invested when the
Company receives permits for its Mt. Hope project and when the bank loan
becomes available. The transaction with Hanlong is expected to provide
all remaining capital necessary to place the Mt. Hope project into
production.
General Moly is a U.S.-based molybdenum mineral development, exploration
and mining company listed on the NYSE Amex (formerly the American Stock
Exchange) 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 primary molybdenum producer by the middle of the
decade. 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. The closing of the Hanlong transaction
and obtaining bank financing are subject to a number of conditions
precedent that may not be fulfilled. 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:
Seth Foreman, 303-928-8591
sforeman@generalmoly.com
or
Business
Development:
Greg McClain, 303-928-8601
gmcclain@generalmoly.com
or
Website:
http://www.generalmoly.com
info@generalmoly.com