General Moly, Inc. (the "Company") (NYSE MKT and TSX: GMO), a U.S. -based molybdenum mineral development, exploration and mining company, announced through its 80% owned Mt. Hope subsidiary, Eureka Moly, LLC, that the Bureau of Land Management (“BLM”) has accepted its reclamation bonding for the Mt. Hope Project and has granted authorization to proceed with surface disturbing activities.
A group of surety underwriters arranged by Marsh USA Inc. were assembled to satisfy financial guarantees required by the BLM’s reclamation cost estimate in the Mt. Hope Record of Decision (“ROD”). The surety program has been funded with an initial cash payment of $5.6 million and requires additional cash funding of $11.6 million through the construction process for a total of $17.2 million which is in alignment with the net cash bonding cost included in the August 2012 capital estimate. This total covers the first three years of estimated surface disturbance at Mt. Hope, and is subject to ongoing evaluation thereafter. With the surety program in place and the initial contribution funded, the BLM has authorized that surface disturbance in conformity with the Record of Decision may proceed.
Bob Pennington, Chief Operating Officer of General Moly, said “After receiving funding from POS-Minerals Corporation, our joint venture partner on the Mt. Hope Project, and obtaining authorization from the BLM on reclamation bonding, we will now move beyond our ongoing cultural clearance program and initiate light construction activities including early well field development and clearing and grubbing as we prepare for heavy construction in the spring.”
The State of Nevada Division of Environmental Protection issued a Reclamation Permit for the Mt. Hope Project on November 19, 2012. The Reclamation Permit authorized surface disturbance and construction of facilities. The permit was issued on the basis of a site specific application detailing the reclamation methods to be used to return the land to safe and stable conditions and a productive post-mining land use. The Reclamation Permit also approved the reclamation cost estimate of approximately $73 million and established financial guarantee requirements based on this estimate.