General Moly, Inc. (the "Company") (NYSE Amex and TSX: GMO) today, through its 80% controlled subsidiary Eureka Moly, LLC, presented a $12 million global settlement offer ("the Offer") at the Eureka County commissioners meeting to principally resolve the outstanding water rights appeal. The Offer is comprised of $3 million immediately upon signing of an agreement and dismissal of all appeals before the Nevada District Court and $5 million contributed over time to the Diamond Valley Sustainability Trust. The funds would augment the existing $4 million Diamond Valley Sustainability Trust announced in August 2010, and bring the total commitment to $12 million.
Bruce D. Hansen, Chief Executive Officer, said, "The terms of this offer represent our Good Neighbor attempt to reach agreement with Eureka County stakeholders relating to water issues in Diamond Valley and Kobeh Valley prior to the appeal hearing on April 3rd. We remain extremely confident that our water rights will be upheld in District Court. However, the water appeal by the County Commissioners, three growers and one rancher has been divisive to the community. This offer will help all growers and ranchers in the community to improve the sustainability of the Diamond Valley agricultural and ranching economy. We firmly believe that the total $12 million focused on conservation efforts will help restore the Diamond Valley water balance that has been declining over several decades. We encourage the appellants to put their $3 million portion of this offer into the Sustainability Trust and also encourage Eureka County to contribute to the Sustainability Trust to support water conservation, given its significant financial resources."
The Sustainability Trust Board would remain tasked with developing and implementing programs that will serve to enhance the sustainability and well-being of the agricultural economy in the Diamond Valley Hydrographic Basin through reduced water consumption, which may include the Trust purchasing and relinquishing water rights in Diamond Valley to help bring the Diamond Valley basin into a more sustainable water balance.
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