Press release from Business Wire
General Moly Presents Good Neighbor Offer to Eureka Stakeholders
Tuesday, March 06, 2012
EUREKA, Nev. (Business Wire) -- General Moly, Inc. (the "Company") (NYSE Amex and TSX: GMO) today, through its 80% controlled subsidiary Eureka Moly, LLC, presented a $12 million global settlement offer ("the Offer") at the Eureka County commissioners meeting to principally resolve the outstanding water rights appeal. The Offer is comprised of $3 million immediately upon signing of an agreement and dismissal of all appeals before the Nevada District Court and $5 million contributed over time to the Diamond Valley Sustainability Trust. The funds would augment the existing $4 million Diamond Valley Sustainability Trust announced in August 2010, and bring the total commitment to $12 million.
Bruce D. Hansen, Chief Executive Officer, said, "The terms of this offer represent our Good Neighbor attempt to reach agreement with Eureka County stakeholders relating to water issues in Diamond Valley and Kobeh Valley prior to the appeal hearing on April 3rd. We remain extremely confident that our water rights will be upheld in District Court. However, the water appeal by the County Commissioners, three growers and one rancher has been divisive to the community. This offer will help all growers and ranchers in the community to improve the sustainability of the Diamond Valley agricultural and ranching economy. We firmly believe that the total $12 million focused on conservation efforts will help restore the Diamond Valley water balance that has been declining over several decades. We encourage the appellants to put their $3 million portion of this offer into the Sustainability Trust and also encourage Eureka County to contribute to the Sustainability Trust to support water conservation, given its significant financial resources."
The Sustainability Trust Board would remain tasked with developing and implementing programs that will serve to enhance the sustainability and well-being of the agricultural economy in the Diamond Valley Hydrographic Basin through reduced water consumption, which may include the Trust purchasing and relinquishing water rights in Diamond Valley to help bring the Diamond Valley basin into a more sustainable water balance.
The Offer requires that all appeals relating to the Company's water rights currently before the Nevada District Court be dismissed and that current appellants agree not to further contest the approval of the Monitoring Mitigation & Management Plan (the "3M Plan") currently being developed. The Offer also requires that the parties to the agreement, including the Eureka County Commissioners, turn their support to our project and not protest or impede our efforts to secure all final permits.
Importantly, the Offer does not preclude any stakeholder's ability to meaningfully participate in the public comment process for any State or Federal permit nor does it limit any stakeholder's ability to contest the Company's permits in the future should the Mt. Hope mine not be operated in accordance with terms and conditions included in issued permits.
The Offer expires on Friday, March 30, 2012 in anticipation of the upcoming District Court hearing on the Company's water permits on Tuesday, April 3, 2012.
Mr. Hansen continued, "2012 is expected to be a year full of significant milestones for this Company. We anticipate all our State and Federal permits to be issued in the second or third quarter of this year, anticipate closing over $800 million in financing shortly following the BLM's issuance of the ROD, and hope to be constructing our facility before the end of the year. We want to resolve these disputes over our water permits quickly and prepare ourselves, our team, and the Eureka Community for its exciting future. I feel this Offer is more than fair to all stakeholders involved in our project and hope this Offer can allow us to move on with our project."
The table below outlines the detailed timing of payments under the Offer.
Total payments under
|Upon Signing||$3 million(1)||
|Upon receipt of full financing||$2 million||$2 million|
|Upon first Production||$1 million||$1 million||$2 million|
One year anniversary of first
|$1 million||$1 million||$2 million|
Two year anniversary of first
|$2 million||$2 million|
Three year anniversary of first
|$1 million||$1 million|
|Total||$4 million||$8 million||$12 million|
(1) Initial payment made to Appellants, all subsequent payments made to Sustainability Trust
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 decade. For more information on the Company, please visit our website at http://www.generalmoly.com.
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. The closing of the Hanlong transaction and obtaining bank financing are subject to a number of conditions precedent that may not be fulfilled. 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.
Investors and Business Development:
Seth Foreman, 303-928-8591
Zach Spencer, 775-748-6059