General Moly, Inc. (the "Company") (NYSE MKT: GMO) (TSX: GMO), a U.S.-based molybdenum mineral development, exploration and mining company, provided an update to the Mt. Hope Project's financing and development.
Early construction activities are progressing as planned at the Mt. Hope project site including cultural clearance, clearing and grubbing, wood harvesting, and the development of wells and water pipelines. Kautz Environmental Consultants has completed field mitigation activities for all 32 cultural sites identified in the Phase I Cultural Mitigation of the initial construction program. Official releases from the Bureau of Land Management and the State Historical Preservation Office have been obtained for 20 of the 32 cultural sites. Ames Construction has cleared and grubbed over 625 acres and is planning for the construction of the administrative office and mill site areas as well as clearing the water pipeline corridor in preparation for developing the well field and water distribution system to support heavy construction activities. Also, TIC has begun the construction of pipelines and pumping systems for the distribution of approximately 2,000 gallons per minute of water in preparation for heavy earthworks in the spring. In addition, more than 100 cords of firewood have been cut and harvested for distribution to homes in the local community.
Bruce D. Hansen, Chief Executive Officer of General Moly, said "Based on recent meetings in China, we continue to be pleased with the progress we are making on negotiating final terms and concluding syndication efforts relating to our $665 million term loan. General Moly, Hanlong and China Development Bank (“CDB”) are collaborating closely to expedite this key component of the Mt. Hope financing plan."
The Company is working with CDB and Hanlong on loan syndication as CDB has indicated that it will lend up to $399 million out of the $665 million total and arrange a consortium of Chinese and international banks to fund the balance of $266 million for the construction of the Mt. Hope Project. The interest rate will remain subject to market conditions and Chinese government policy. The Company targets having the loan completed, approved and funds available by no later than mid-2013. Hanlong or an affiliate is obligated to guarantee the Term Loan, throughout its life.