Posco to invest $170M for stake in moly project

Dec 18, 2007 | 02:33 PM | Meghann McDonell

South Korean steelmaker Posco Ltd. has agreed to invest $170 million to help bring General Moly Inc.'s $852-million Mount Hope molybdenum mining project in central Nevada into production.

General Moly has agreed to form a joint-venture company to operate the mine. Posco's contribution will net it 20 percent of the joint venture and entitle it to 20 percent of the molybdenum mined at Mount Hope.

"We see Posco as a fantastic long-term sustainable partner as we finance and develop the world-class 1.3-billion-pound Mount Hope project," Bruce Hansen, General Moly's chief executive officer, said Tuesday. "This win-win deal, combined with the equity proceeds received and off-take arrangement reached with our other strategic investor, ArcelorMittal SA, dramatically reduces our credit risk and enhances our ability to finance the remainder of the Mount Hope development requirements."....

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