GENERAL MOLY
PROVIDES MT. HOPE PROJECT UPDATE
LAKEWOOD, COLORADO - February 5, 2009, General Moly (NYSE Alternext and TSX:
GMO) provided an update to the Mt. Hope project.
The Company finished the
year with an unaudited consolidated cash balance of $91 million. Based on
a revised cash expenditure projection, existing cash is anticipated to last the
Company at least through the third quarter of 2009 while maintaining the ability
to construct Mt. Hope within 15-18 months following receipt of all necessary
permits. Lower spending levels are expected to result from successful
negotiations with and support from vendors whose progress payments have been
deferred and equipment manufacturing slots swapped.
The Company is continuing
to evaluate a number of potential sources for approximately $50-$150 million in
interim financing including additional support from current strategic partners,
the possibility of a sale of another minority interest in the Mt. Hope project,
debt from private investment groups, and continued monitoring of capital
markets. Credit Suisse and Barclays continue to work toward the ultimate
bank project financing. The Company hopes that project financing can be completed
in conjunction with receipt of the final permits. If the Company
determines that financing is unavailable or uneconomic, it has further
financial flexibility, subject to agreement with POSCO, to conserve existing
cash, however such flexibility would likely adversely impact the Mt. Hope
schedule.
Bruce D. Hansen, Chief
Executive Officer, said, "Our focus remains on cash conservation and
maintaining schedule flexibility while continuing to pursue both interim and
ultimate project financing. We believe that our current and projected
cash balances provide additional flexibility to wait out the financing markets,
if necessary."
The Company currently
anticipates receiving its Record of Decision (ROD) for Mt. Hope in the fourth
quarter of 2009 driven by the completion and acceptance of the final baseline
studies related to pit lake geochemistry and regional
hydrology. The final reports were submitted to the Bureau of Land
Management (BLM) on November 3rd, 2008 and are anticipated to be approved this
month. Writing of the Draft Environmental Impact Statement (DEIS) is
approximately 85% complete and the Company anticipates the publishing of the
DEIS in the second quarter of 2009.
Construction at the Mt.
Hope property is anticipated to last approximately 15-18 months, based on a
revised and shortened construction timeline. Pre-stripping has been
condensed by two months and is now anticipated to take 14 months. Assuming
the maintenance of the current permitting schedule and the availability of full
project financing, commercial production rates at Mt. Hope are currently
anticipated to be achieved in the first half of 2011.
* * * *
General Moly
is a U.S.-based molybdenum mineral development, exploration and mining company
listed on the NYSE Alternext (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.
Contact Information
- General Moly:
Investors - Seth
Foreman
(303) 928-8591
sforeman AT generalmoly.com
Business Development - Greg
McClain
(303)
928-8601
gmcclain AT generalmoly.com
Website: http://www.generalmoly.com
info AT generalmoly.com
Forward-Looking
Statements
Statements herein that are
not historical facts are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, and involve a
number of risks and uncertainties that could cause actual results to differ
materially from those projected, anticipated, expected or implied. These risks
and uncertainties include, but are not limited to, the Company's ability to
obtain required permits to commence production and its ability to raise
required financing, metals price and production volatility, exploration risks
and results, and project development risks. 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-KSB, as the same are amended
from time to time, on file with the SEC. The Company undertakes no obligation
to update forward-looking statements.
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