General Moly Announces Continued Progress on Mt. Hope Project Financing and Development
LAKEWOOD, Colo.--(BUSINESS WIRE)-- 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.
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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