i am loosing hope that moly price will ever recover

General Moly receives $56-million Mt. Hope payment

2012-12-06 17:10 ET - News Release

Mr. Bruce Hansen reports

GENERAL MOLY ANNOUNCES RECEIPT OF $100 MILLION CONTRIBUTION PAYMENT FROM JOINT VENTURE MEMBER POS-MINERALS TO COMMENCE CONSTRUCTION AT THE MT. HOPE PROJECT

General Moly Inc.'s 80-per-cent-owned subsidiary Eureka Moly LLC has received from POS-Minerals Corp., a 20-per-cent joint venture partner on the Mt. Hope project, its third contribution payment in the amount of $56-million. In addition, POS-Minerals delivered a catch-up contribution in the amount of $44-million. Funds from these contributions will be allocated by Eureka Moly to initiate construction activities at the Mt. Hope project.

The members of Eureka Moly, General Moly and POS-Minerals agreed that $36-million of the $100-million contribution be held in a reserve account to maintain liquidity pending confirmation of the $665-million General Moly term loan. General Moly announced that China Development Bank had confirmed the basic terms underlying this proposed $665-million term loan on Feb. 16, 2012.

Bruce Hansen, chief executive officer of General Moly, said: "With these development funds, the world-class Mt. Hope project is transitioning into the construction phase. We want to thank POS-Minerals for their support and partnership as we reach this important financing milestone."

Mr. Hansen added: "We continue to target spring 2013 for receipt of China Development Bank funding. This coincides with the terrain at Mt. Hope being adequately thawed to initiate heavy construction. In the weeks ahead, we will start light construction activities better suited to the winter, including early well field development, clearing and grubbing, and the continuation of our cultural clearance efforts as we prepare for heavy construction in the spring."