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
TheStreet Open House

General Moly Signs $125 Million Subordinated Debt Facility

Stocks in this article: GMO

General Moly, Inc. (the "Company") (NYSE MKT: GMO) (TSX: GMO), a U.S.-based molybdenum mineral development, exploration and mining company, announced that the Company has signed a binding agreement with Hanlong (USA) Mining (“Hanlong”) to provide a $125 million subordinated debt facility supplementing a previously announced $665 million Chinese sourced term loan that is being negotiated with China Development Bank (“CDB”). The Company had previously announced a letter of intent related to this facility with Hanlong on August 1, 2012.

Bruce D. Hansen, Chief Executive Officer of General Moly, said, “The Company continues to receive tremendous support from Hanlong in funding the Mt. Hope Project, and we look forward to continuing our work with Hanlong in completing the senior term loan with China Development Bank. We are pleased to have completed this very important component of our Mt. Hope Project finance plan.”

The terms of the subordinated debt facility with Hanlong include the initial availability of $75 million (Tranche A) during the Mt. Hope Project’s construction period. An additional $50 million (Tranche B) becomes available for the 6 month period post commercial production. The $125 million facility can be reduced to the extent equipment is leased. Consideration to Hanlong will include a fee of $6.25 million, payable upon closing of the CDB term loan or other financing of at least $8 million, plus warrants with a 2.5 year maturity to purchase ten million shares of our common stock. The warrants have been priced at a 15% premium to the past 10 day volume weighted average price (VWAP), which results in a warrant strike price of $4.23 per share. Both Tranche A & B, if drawn, will mature in 5 years from the Mt. Hope Project’s achievement of commercial production and will have mandatory prepayments of 50% of the Company’s free cash flow, after the senior CDB term loan’s debt service. Advances under the subordinated debt facility are subject to a number of conditions precedent, including signing and funding of the CDB terms loan.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs