General Moly Announces Receipt of $100 Million Contribution Payment from Joint Venture Member POS-Minerals to Commence Construction at the Mt. Hope Project
General
Moly, Inc. (the 'Company') (NYSE MKT and TSX: GMO), a U.S.-based
molybdenum mineral development, exploration and mining company,
announced that its 80% owned subsidiary Eureka Moly, LLC received from
POS-Minerals Corporation, a 20% joint venture partner on the Mt. Hope
Project, its third contribution payment in the amount of $56 million. In
addition, POS-Minerals delivered a catch-up contribution in the amount
of $44 million. Funds from these contributions will be allocated by
Eureka Moly to initiate construction activities at the Mt. Hope Project.
The members of Eureka Moly, General Moly and POS-Minerals, agreed that
$36 million of the $100 million contribution be held in a reserve
account to maintain liquidity pending confirmation of the $665 million
General Moly Term Loan. General Moly announced that China Development
Bank had confirmed the basic terms underlying this proposed $665 million
Term Loan on February 16, 2012.
Bruce D. Hansen, Chief Executive Officer of General Moly, said, 'With
these development funds, the world-class Mt. Hope Project is
transitioning into the construction phase. We want to thank POS-Minerals
for their support and partnership as we reach this important financing
milestone.?
Mr. Hansen added, 'We continue to target Spring 2013 for receipt of
China Development Bank funding. This coincides with the terrain at Mt.
Hope being adequately thawed to initiate heavy construction. In the
weeks ahead, we will start light construction activities better suited
to the winter including early well field development, clearing and
grubbing and the continuation of our cultural clearance efforts as we
prepare for heavy construction in the spring.?
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. 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
info@generalmoly.com
http://www.generalmoly.com