General Moly Announces Receipt of $100 Million Contribution Payment from Joint Venture Member POS-Mi
General Moly Announces Receipt of $100 Million Contribution Payment from Joint Venture Member POS-Minerals to Commence Construction at the Mt. Hope Project
LAKEWOOD, Colo.--(BUSINESS WIRE)-- 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.
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.
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