Press release from Business Wire
General Moly Receives $10 Million Under Hanlong Bridge Loan Agreement
Monday, April 26, 2010
General Moly Receives $10 Million Under Hanlong Bridge Loan Agreement08:30 EDT Monday, April 26, 2010 LAKEWOOD, Colo. (Business Wire) -- General Moly (NYSE Amex: GMO) (TSX: GMO) announced that, following ArcelorMittal's decision to waive its anti-dilution rights with respect to the Hanlong transaction, the Company requested and received the first $10 million tranche under the Hanlong Bridge Loan agreement. The first tranche of the Bridge Loan carries an interest rate of LIBOR plus 2% and is repayable out of the proceeds from the $665 million Bank Loan that Hanlong is anticipated to procure early in 2011. Bruce D. Hansen, Chief Executive Officer said, "Although we have no immediate need for the funding, drawing the first $10 million under the Bridge Loan facility secures the break fee associated with the overall Hanlong transaction and provides us with the flexibility to re-start engineering and procurement as our permitting continues to progress." The next steps in the Hanlong transaction include receiving stockholder approval for the transaction at the Company's May 13 Annual General Meeting, publishing the Draft Environmental Impact Statement (EIS) in mid-year, and receiving necessary Chinese Governmental approvals in the third quarter, allowing the closing of the $40 million Tranche 1 equity sale in the third or fourth quarter of the year. General Moly is a U.S.-based molybdenum mineral development, exploration and mining company listed on the NYSE Amex (formerly the American Stock Exchange) and the Toronto Stock Exchange under the symbol GMO. Our primary asset, our interest in the Mt. Hope project located in central Nevada, is considered one of the world's largest and highest grade molybdenum deposits. Combined with our second molybdenum property, the Liberty project that is also located in central Nevada, our goal is to become the largest primary molybdenum producer by the middle of the next decade. For more information on the Company, please visit our website at http://www.generalmoly.com. Forward-Looking Statements Statements herein that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and are intended to be covered by the safe harbor created by such sections. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected, or implied by the Company. These risks and uncertainties include, but are not limited to, metals price and production volatility, global economic conditions, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, exploration risks and results, political, operational and project development risks, including the Company's ability to obtain required permits to commence production and its ability to raise required financing, adverse governmental regulation and judicial outcomes. Investments by Hanlong and a loan from a Chinese Bank are subject to a number of consents, approvals and conditions precedent that may not be obtained and met. Acceptable loan terms with a Chinese bank require negotiation. For a detailed discussion of risks and other factors that may impact these forward looking statements, please refer to the Risk Factors and other discussion contained in the Company's quarterly and annual periodic reports on Forms 10-Q and 10-K, on file with the SEC. The Company undertakes no obligation to update forward-looking statements.