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).