General Moly pledges not to cancel Mt. Hope project

Nov 25, 2008 | 09:59 AM | Mick Bowen

General Moly Inc., Lakewood, Colo., will not cancel its Mt. Hope molybdenum project in Nevada, although restrictions on financing could cause delays.

"There is no risk this project will be shelved, but if credit is not available or if it's just too expensive, we could maybe defer plans," investor relations director Seth Foreman told AMM.

General Moly ended the third quarter with $121 million in cash, but is currently looking for interim financing to move forward with the project in the first quarter before getting full project financing in the second half of next year, Foreman said. At the current pace, production at Mt. Hope will start in late 2009, he added.

However, FBR Research analyst Amir Arif lowered his target price for General Moly stock to $2 per share from $7 "to reflect the increased risk of (the Mt. Hope) project being shelved, or at least delayed significantly relative to current company projections." ....

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