NEW YORK (AP) â¿¿ Shares of General Moly surged more than 20 percent Thursday after a Nevada court backed the approval of water rights for one of the mining company's projects.
THE SPARK: The Nevada State District Court, in a filing dated Wednesday, issued an order affirming a state engineer's order approving water rights for its Mt. Hope project in Nevada and the subsequent issuance of permits for the project.
THE BIG PICTURE: Lakewood, Colo.-based General Moly mines for molybdenum, an element used in steel and cast iron.
In July, the company received approval to use 11,300 acre-feet of water annually for its Mt. Hood molybdenum mine, but some area farmers appealed the permits, saying they didn't receive a fair hearing on the applications.
"Obtaining water rights for the Mt. Hope project has been a long process and I am eager to move beyond the protests and appeals of the past three years toward a more positive and engaged dialogue with the County of Eureka and its citizens," said CEO Bruce Hansen.
Hansen said the company looks forward to receiving its remaining state and federal permits and starting construction later this year.
THE SHARES: Shares of General Moly Inc. rose 54 cents to $3.26 in heavy midday trading. Over the past 52 weeks, the company's shares have traded between $1.98 and $4.93.