BLM Accepts General Moly Reclamation Bonding for Mt. Hope Project and Grants Authorization to Proceed with Construction
LAKEWOOD, Colo.--(BUSINESS WIRE)-- General Moly, Inc. (the "Company") (NYSE MKT and TSX: GMO), a U.S.-based molybdenum mineral development, exploration and mining company, announced through its 80% owned Mt. Hope subsidiary, Eureka Moly, LLC, that the Bureau of Land Management ("BLM") has accepted its reclamation bonding for the Mt. Hope Project and has granted authorization to proceed with surface disturbing activities.
A group of surety underwriters arranged by Marsh USA Inc. were assembled to satisfy financial guarantees required by the BLM's reclamation cost estimate in the Mt. Hope Record of Decision ("ROD"). The surety program has been funded with an initial cash payment of $5.6 million and requires additional cash funding of $11.6 million through the construction process for a total of $17.2 million which is in alignment with the net cash bonding cost included in the August 2012 capital estimate. This total covers the first three years of estimated surface disturbance at Mt. Hope, and is subject to ongoing evaluation thereafter. With the surety program in place and the initial contribution funded, the BLM has authorized that surface disturbance in conformity with the Record of Decision may proceed.
Bob Pennington, Chief Operating Officer of General Moly, said "After receiving funding from POS-Minerals Corporation, our joint venture partner on the Mt. Hope Project, and obtaining authorization from the BLM on reclamation bonding, we will now move beyond our ongoing cultural clearance program and initiate light construction activities including early well field development and clearing and grubbing as we prepare for heavy construction in the spring."
The State of Nevada Division of Environmental Protection issued a Reclamation Permit for the Mt. Hope Project on November 19, 2012. The Reclamation Permit authorized surface disturbance and construction of facilities. The permit was issued on the basis of a site specific application detailing the reclamation methods to be used to return the land to safe and stable conditions and a productive post-mining land use. The Reclamation Permit also approved the reclamation cost estimate of approximately $73 million and established financial guarantee requirements based on this estimate.
General Moly is a U.S.-based molybdenum mineral development, exploration and mining company listed on the NYSE MKT (formerly the NYSE AMEX) 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 pure play primary molybdenum producer in the world. 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. The bank financing and subordinated loans are subject to final negotiation and satisfaction of conditions precedent. 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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