BLM Accepts General Moly Reclamation Bonding for Mt. Hope Project and Grants Authorization to Proceed with Construction
General
Moly, Inc. (the 'Company') (NYSE MKT and TSX: GMO), a U.S.-based
molybdenum mineral development, exploration and mining company,
announced through its 80% owned Mt. Hope subsidiary, Eureka Moly, LLC,
that the Bureau of Land Management ('BLM?) has accepted its reclamation
bonding for the Mt. Hope Project and has granted authorization to
proceed with surface disturbing activities.
A group of surety underwriters arranged by Marsh USA Inc. were assembled
to satisfy financial guarantees required by the BLM′s reclamation cost
estimate in the Mt. Hope Record of Decision ('ROD?). The surety program
has been funded with an initial cash payment of $5.6 million and
requires additional cash funding of $11.6 million through the
construction process for a total of $17.2 million which is in alignment
with the net cash bonding cost included in the August 2012 capital
estimate. This total covers the first three years of estimated surface
disturbance at Mt. Hope, and is subject to ongoing evaluation
thereafter. With the surety program in place and the initial
contribution funded, the BLM has authorized that surface disturbance in
conformity with the Record of Decision may proceed.
Bob Pennington, Chief Operating Officer of General Moly, said 'After
receiving funding from POS-Minerals Corporation, our joint venture
partner on the Mt. Hope Project, and obtaining authorization from the
BLM on reclamation bonding, we will now move beyond our ongoing cultural
clearance program and initiate light construction activities including
early well field development and clearing and grubbing as we prepare for
heavy construction in the spring.?
The State of Nevada Division of Environmental Protection issued a
Reclamation Permit for the Mt. Hope Project on November 19, 2012. The
Reclamation Permit authorized surface disturbance and construction of
facilities. The permit was issued on the basis of a site specific
application detailing the reclamation methods to be used to return the
land to safe and stable conditions and a productive post-mining land
use. The Reclamation Permit also approved the reclamation cost estimate
of approximately $73 million and established financial guarantee
requirements based on this estimate.
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
Website:
http://www.generalmoly.com
info@generalmoly.com