LAKEWOOD, Colo.–(BUSINESS WIRE)–Sep. 24, 2014– General Moly, Inc. (the “Company” or “General Moly”)(NYSE MKT and TSX: GMO), a U.S.-based molybdenum mineral development, exploration, and mining company, announced a general corporate update regarding the Company’s Mt. Hope Project and Liberty Project:
- In connection with the financing efforts for the Mt. Hope Project, the Company continues to advance substantive dialogue with multiple private Chinese industrial companies and a large Chinese financial institution capable of supporting the majority of capital requirements; Discussions are ongoing relating to investment agreement terms, sponsorship requirements, and indicative loan terms associated with a $700 to $750 million debt and equity package;
- The fully permitted Mt. Hope Project remains in a construction-ready status with engineering approximately 65% complete and a substantial amount of long-lead time equipment either fully purchased or substantially paid for;
- The Mt. Hope Project’s capital costs, operating costs and economics were updated by the Company and its independent consultants with a technical report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administration (“NI 43-101”) and filed under the Company’s profile at www.sedar.com on January 16, 2014; and
- The Liberty Project is proceeding from a Pre-Feasibility Study to a Full Feasibility Study with a phased program to collect additional deposit samples utilizing a targeted drilling campaign, a metallurgical test program and initial permitting activity following the findings of an updated NI 43-101 Technical Report on July 30, 2014 confirming the technical and financial viability of the Liberty Project. A copy of the report is also available under the Company’s profile at www.sedar.com.
Bruce D. Hansen, Chief Executive Officer of General Moly, said “We are moving aggressively to obtain full Mt. Hope Project financing and subsequent commencement of heavy construction. We remain optimistic that we will secure new financing given the many advantages of the Mt. Hope Project, which is far more advanced today than when our prior financing agreement was reached in 2010.”
Mr. Hansen added, “Today, we are advancing a fully permitted, construction-ready project in the stable, mining-friendly jurisdiction of Nevada, U.S.A. Mt. Hope offers high ore grades and low operating costs that were recently updated. In addition, the off-take agreements with floor price protection we have secured with partners in Europe and Asia represent another significant advantage to obtaining project financing. We are also pushing forward to develop the scope of a drill program, a metallurgical test program and initial permitting activity to support a Full Feasibility Study for the Liberty Project.”
As expected, on September 22nd the plaintiffs opposing the Mt. Hope Project filed their notice of appeal to the U.S. Court of Appeals for the Ninth Circuit after the U.S. District Court denied a prior challenge to the Bureau of Land Management’s (“BLM”) issuance of the Record of Decision (“ROD”) for the Mt. Hope Project. Briefing by the parties will likely commence in the first quarter of 2015. All Mt. Hope permits remain in effect and the Company is confident in the BLM’s process and will continue to vigorously defend this subsequent appeal of the ROD.
* * * *
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. The Company’s 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 the Company’s second project, the Liberty Project, a molybdenum and copper property 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 maintain required permits to continue construction, commence production and its ability to raise required project financing, adverse governmental regulation and judicial outcomes, including appeal of the Record of Decision and appeal of water permits and estimates related to cost of production, capital, operating and exploration expenditures. 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.
Source: General Moly