LAKEWOOD, Colo., Oct. 16, 2017 /CNW/ -- General Moly, Inc.
(the "Company") (NYSE MKT and TSX: GMO), the only western exchange
listed, pure-play molybdenum mineral development company, and its
largest shareholder AMER International Group ("AMER") announced the
closure of the second tranche of the parties' three-tranche
financing agreement, originally announced in 2015.
At the close of Tranche 2, General Moly issued 14,634,146 shares
to AMER, priced at the volume weighted average price ("VWAP") for
the 30-day period ending August 7,
2017 (the date of the parties' Amendment No. 2 to the
Investment and Securities Purchase Agreement) of $0.41 per share for a private placement of
$6.0 million by AMER. The
equity sale proceeds of $5.5 million
will go to general corporate purposes, while $0.5 million will be held in the loan procurement
account to cover costs related to the Mt. Hope Project financing
and other jointly sourced business development opportunities.
With the previous closure of Tranche 1 and the issuance of
13,333,333 million shares in November
2015, and the closure of Tranche 2 and the issuance of 14.6
million shares, AMER now holds an approximately 22% outstanding
interest. The closure of these two investment tranches with
AMER is part of a broader financing agreement. AMER has
committed to provide to General Moly $20.0
million in three tranches of private placements in addition
to a $700.0 million Chinese bank loan
for the development of the Company's Mt. Hope Project in
Nevada that AMER will source and
guarantee when there are improved molybdenum prices over a
sustained period coupled with the receipt of water permits and
Record of Decision for the Mt. Hope Project.
The third tranche is a $10.0
million private placement for 20 million shares, priced at
$0.50 and conditioned upon the
reissuance of water permits for the Mt. Hope Project or the earlier
completion of a joint business opportunity involving issuance of
more than 10.0 million shares of GMI common stock. Tranche 3 may be
subject to General Moly stockholder approval.
Bruce D. Hansen, General Moly's
Chief Executive Officer said, "We are extremely pleased to close
Tranche 2, reinforcing the commitment of General Moly and AMER to
our long-term strategic partnership. We value our
relationship with AMER as we work together to achieve full
financing for the development of the Mt. Hope Project, upon
increasing molybdenum prices and achievement of the water permits
and Record of Decision. In the interim, along with AMER, we
continue to evaluate mutually beneficial business development
opportunities."
About General Moly
General Moly is a U.S.-based molybdenum mineral development,
exploration and mining company listed on the NYSE MKT and the
Toronto Stock Exchange under the symbol GMO. The Company's primary
asset, an 80% 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 the Company's wholly-owned Liberty Project, a
molybdenum and copper property also located in central Nevada, General Moly's goal is to become the
largest pure-play primary molybdenum producer in the world.
Molybdenum is a metallic element used primarily as an alloy
agent in steel manufacturing. When added to steel, molybdenum
enhances steel strength, resistance to corrosion and extreme
temperature performance. In the chemical and petrochemical
industries, molybdenum is used in catalysts, especially for cleaner
burning fuels by removing sulfur from liquid fuels, and in
corrosion inhibitors, high performance lubricants and polymers.
Contact:
Scott Roswell
(303) 928-8591
info@generalmoly.com
Website: 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 a re-grant of its water permits and Record of Decision,
ability to maintain required federal and state permits to continue
construction, and commence production, ability to raise required
project financing, ability to respond to adverse governmental
regulation and judicial outcomes, and ability to maintain and/or
adjust estimates related to cost of production, capital, operating
and exploration expenditures. 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.
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SOURCE General Moly, Inc.