NEW YORK General Moly
Inc.s 80-percent-owned Eureka Moly LLC subsidiary has
received a $100-million contribution from its South Korean
partner to start construction on the Mount Hope molybdenum
project in Nevada.
Some $36 million of the
contribution from POS-Minerals Corp. will be held in a reserve
account while General Moly awaits confirmation of a
$665-million loan from the China Development Bank. POS-Minerals
Corp., a unit of steelmaker Posco Ltd., owns the other 20
percent of Mount Hope.
Initial construction of the
Mount Hope project, which received its final permitting
qualifications in November, will begin over the winter and
heavy construction will start in spring 2013, chief executive
officer Bruce Hansen said in a statement.
The $1.28-billion project is
slated to produce 40 million pounds of molybdenum per year (
amm.com, Aug. 1).