This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
General Moly, Inc. (the "Company") (NYSE MKT: GMO)(TSX: GMO) announced its unaudited financial results for the second quarter ended June 30, 2012. Net loss for the three months ended June 30, 2012 was $2.7 million ($0.03 per share), compared to a loss of $5.4 million ($0.06 per share) for the year ago period.
Our cash balance at the end of the second quarter was $28.2 million compared to $40.7 million at the end of 2011. During the six months ended June 30, 2012, cash use of $12.5 million was the result of $9.4 million in Mt. Hope Project development, engineering and procurement costs, $3.7 million in General and Administrative expenses, partially offset by $0.6 million in proceeds from stock option exercises.
Financial information is included at the end of this release.
MT. HOPE PROJECT FINANCING UPDATE
In connection with the revised capital estimate referenced below, the Company has entered into a non-binding letter of intent (LOI) with Hanlong (USA) Mining (“Hanlong”) to provide or arrange up to $125 million in subordinated debt to supplement a previously announced $665 million Chinese sourced term loan that is being negotiated with China Development Bank (CDB). The terms of this LOI with Hanlong include the initial availability of $75 million (Tranche A) during the Mt. Hope Project’s construction period and an additional $50 million (Tranche B) available during the 6 month period post construction. The $125 million facility can be reduced to the extent equipment is leased. Both Tranche A & B, if drawn, will mature in 5 years from the Mt. Hope Project’s achievement of commercial production.
CDB has confirmed the basic terms underlying a proposed $665 million term loan to finance the Mt. Hope Project, including a CDB intention to lend $399 million and arrange a consortium of Chinese and international banks to fund the remaining balance. The Company and Hanlong are continuing to work with CDB with a target of having the term loan completed, approved and available to the Company shortly after receipt of the Mt. Hope Project’s operating permits.Once the CDB term loan is in place and required permits are received, the Company intends to close on Hanlong’s Tranche 2 equity purchase for $40 million.