General Moly’s history dates back to November 23, 1925, when the Company was incorporated in Idaho under the name “General Mines Corporation.” The Company was formed for the purpose of acquiring, exploring and developing mineral resource properties, primarily precious and associated base metals, although for a good number of years, the Company was dormant.
In 1966, the Company changed its name to “Idaho General Petroleum and Mines Corporation” and changed its name again in 1967 to “Idaho General Mines, Inc.”
By the beginning of 2003, the Company owned two properties located in Shoshone County, Idaho. Neither property contained any known proven or probable reserves and no exploration had been conducted on either property in a number of years. The Company held the two properties for the value of their timber, which was harvested on occasion.
However, given higher metal prices and a more favorable financing environment, the Company decided to become more active in the acquisition and exploration of mineral properties. In June 2003, the Company was accepted for trading on the Over-The-Counter Bulletin Board (OTC-BB) with a ticker of “IGMI” where the Company raised funds to support itself and its project exploration and evaluation programs.
In November 2004, with global steel demand soaring and molybdenum prices rising in excess of $30 per pound, the Company entered into a lease for the Mt. Hope molybdenum project, near Eureka, Nevada. The Company raised nearly $1M through a private placement and initiated permitting and feasibility work in July 2005.
In March 2006, the Company entered into an agreement with High Desert Winds, LLC to purchase the Hall-Tonopah mine near Tonopah Nevada. The Hall-Tonopah project included water rights, mineral and surface rights, buildings and certain equipment. At the time, the Hall-Tonopah property was subject to a 12% royalty payable to Equatorial Mining North America, a former operator of the Hall-Tonopah mine.
In June 2006, the Company submitted its initial Mt. Hope project Plan of Operations (POO) to the Bureau of Land Management (BLM), commencing the lengthy process of completing an Environmental Impact Statement (EIS), which will ultimately allow construction of the Mt. Hope project.
To raise additional funds, the Company listed on the American Stock Exchange (AMEX) in August 2006 under the ticker “GMO”, completing an initial public offering with gross proceeds of $30 million to fund Mt. Hope’s development.
In January 2007, the Company purchased 100% of Equatorial Mining North America, including the subsidiary that owned the 12% royalty on the Hall-Tonopah property from Equatorial Mining Pty. Limited. The acquisition effectively extinguished the 12% royalty on the Hall-Tonopah project.
Also in January 2007, the Board of Directors hired Bruce D. Hansen as Chief Executive Officer, replacing Robert L. Russell who had run the Company through its formative years. Mr. Hansen, in turn, brought in David A. Chaput as Chief Financial Officer as well as the rest of the current management team.
In March 2007, the Company raised $25M through a non-brokered private placement.
In July 2007, the Company completed a Bankable Feasibility Study on the Mt. Hope project.
On October 5, 2007, the Company was reincorporated as a Delaware corporation and changed its name to General Moly, Inc. to better represent its focus on molybdenum and to disassociate itself with Idaho, which was no longer the state of incorporation, headquarters, nor the Company’s geographic focus.
In November 2007, the Company raised $70 million through a private placement with ArcelorMittal, the world’s largest steel company, including a significant off-take agreement. Also in November 2007, the Company announced a Joint Venture with POSCO, the world’s third largest steel company, for a 20% interest in the Mt. Hope project.
On February 14, 2008, the Company commenced trading on the Toronto Stock Exchange (TSX), also under the symbol “GMO.”
In April 2008, the Company completed a pre-feasibility study on the Hall-Tonopah project, which it then re-named the Liberty project.
The economic collapse in late 2008 sent moly prices, which had averaged in excess of $30 per pound over the previous several years, as low as $8 per pound. Further, the equity and debt markets that the Company needed access to in order to finance the project, dried up and became unavailable. Those factors, combined with a longer permitting timeline than originally anticipated, led the Company to enter a cash conservation mode whereby it continued its permitting efforts, limited its expenses and awaited better commodity and financial markets.
In June 2010, the BLM approved the Company’s hydrology studies, which had delayed the Mt. Hope project approximately 15 months dating back to early 2009 when the BLM had requested additional analysis and testing of the Company’s original hydrology models.
In August 2010, the BLM completed and released a Preliminary Draft Environmental Impact Statement (PDEIS) to reviewing and commenting agencies, allowing other government agencies its first ability to comment on the Mt. Hope project.
In April 2011, the BLM completed and re-circulated a second draft of the PDEIS to the same agencies. Comments from this second round of review would form the Draft Environmental Impact Statement (DEIS).
In October 2011, the BLM completed the Mt. Hope DEIS, incorporating and considering comments from two comment periods, which was published in December 2011, commencing a final public comment period.
In November 2011, the Company completed an updated pre-feasibility study on the Liberty project, growing the size of the resource and increasing the project’s Net Present Value.
In May 2012, the Company received a Class 2 Air Quality Permit from the Bureau of Air Pollution Control within the Nevada Division of Environmental Protection (NDEP).
In June 2012, the Mt. Hope Project's 3M Plan (Monitoring, Management and Mitigation) was approved by the Nevada State Engineer (NSE). Separately, a Nevada State District Court issued an Order affirming the NSE's Ruling of July 2011 approving the Mt. Hope Project's water rights and the NSE's December 2011 and January 2012 issuance of water permits for the Mt. Hope Project.
In November 2012, the BLM issued a Record of Decision authorizing development of the Mt. Hope Project. In addition, the Company concluded the permitting process required for the construction of the Mt. Hope Project when NDEP issued a Reclamation Permit and Water Pollution Control Permit.
In December 2012, the Company received from POSCO, its third contribution payment in the amount of $56 million and a catch-up contribution of $44 million to initiate construction activities at the Mt. Hope Project. The Company initiated cultural clearance activities at the Mt. Hope Project.
In January 2013, the Public Utilities Commission of Nevada granted a permit to construct a 230 kV power line that interconnects with Nevada Energy’s transmission system at the existing Machacek Substation located near the town of Eureka, NV and extend it approximately 25 miles to the planned Mt. Hope Substation.
In January 2014, General Moly filed an updated 43-101 technical report for the Mt. Hope Project with updated operating costs, capital costs and project economics.
In July 2014, the Company filed an updated 43-101 technical report for the Liberty Project with updated operating costs, capital costs and project economics.
In December 2014, General Moly signed definitive agreements with a group of accredited investors related to a private placement of units, consisting of senior convertible notes and warrants for gross proceeds of $8.5 million to be used for maintenance of the Mt. Hope Project, the Liberty Project, and general corporate purposes.
In January 2015, General Moly announced an agreement with POSCO, which owns a 20% in the Mt. Hope Project, to use restricted cash of up to $36 million held in a reserve account to fund and maintain the Mt. Hope Project in its permitted, construction-ready status until at least through 2020, covering anticipated operating expenses, and committed equipment purchase obligations unless the full project financing is obtained.
In April 2015, General Moly announced a significant Investment and Security Purchase Agreement with AMER International Group, a private, Chinese-based multinational company that is one of the world’s largest advanced materials, fine machining, and downstream metals refining providers, and was ranked #295 on the 2014 Fortune Global 500 list, that will also create a strategic partnership and equity investment to assist with General Moly’s ability to secure full project financing for the Mt. Hope Project.
In June 2015, an agreement was reached to terminate the existing third-party transmission contracts to provide power to the Mt. Hope Project in favor of a future arrangement for transmission under the provider’s network services agreement. With the agreement, Eureka Moly, LLC, will receive a return of approximately $7.9 million net of termination costs, expenses and consideration to the transmission providers.