General Moly Announces Continued Progress on Mt. Hope Project Financing and Development
General
Moly, Inc. (the 'Company') (NYSE MKT: ?GMO) (TSX: GMO), a U.S.-based
molybdenum mineral development, exploration and mining company, provided
an update to the Mt. Hope Project's financing and development.
Early construction activities are progressing as planned at the Mt. Hope
project site including cultural clearance, clearing and grubbing, wood
harvesting, and the development of wells and water pipelines. Kautz
Environmental Consultants has completed field mitigation activities for
all 32 cultural sites identified in the Phase I Cultural Mitigation of
the initial construction program. Official releases from the Bureau of
Land Management and the State Historical Preservation Office have been
obtained for 20 of the 32 cultural sites. Ames Construction has cleared
and grubbed over 625 acres and is planning for the construction of the
administrative office and mill site areas as well as clearing the water
pipeline corridor in preparation for developing the well field and water
distribution system to support heavy construction activities. Also, TIC
has begun the construction of pipelines and pumping systems for the
distribution of approximately 2,000 gallons per minute of water in
preparation for heavy earthworks in the spring. In addition, more than
100 cords of firewood have been cut and harvested for distribution to
homes in the local community.
Bruce D. Hansen, Chief Executive Officer of General Moly, said 'Based on
recent meetings in China, we continue to be pleased with the progress we
are making on negotiating final terms and concluding syndication efforts
relating to our $665 million term loan. General Moly, Hanlong and China
Development Bank ('CDB?) are collaborating closely to expedite this key
component of the Mt. Hope financing plan.'
The Company is working with CDB and Hanlong on loan syndication as CDB
has indicated that it will lend up to $399 million out of the $665
million total and arrange a consortium of Chinese and international
banks to fund the balance of $266 million for the construction of the
Mt. Hope Project. The interest rate will remain subject to market
conditions and Chinese government policy. The Company targets having the
loan completed, approved and funds available by no later than mid-2013.
Hanlong or an affiliate is obligated to guarantee the Term Loan,
throughout its life.
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
http://www.generalmoly.com
info@generalmoly.com