NEW YORK General Moly Inc. says construction of its Mount Hope molybdenum project is progressing as planned, and the company is finalizing the projects financing terms with Chinese investors.
The Lakewood, Colo.-based company is collaborating closely with Sichuan Hanlong (Group) Co. Ltd. and China Development Bank on negotiating final terms and concluding syndication efforts relating to our $665-million term loan to help fund the project, General Moly chief executive officer Bruce Hansen said in a statement.
The company is working with (China Development Bank) and Hanlong on loan syndication as (China Development Bank ) has indicated that it will lend up to $399 million out of the $665 million total and arrange a consortium of Chinese and international banks to fund the balance of $266 million for the construction of the Mount Hope project, the company said.
General Moly said it aims to have the loan completed, approved and funds available by mid-2013.
The company said construction crews have cleared and grubbed more than 625 acres at the central Nevada site and are planning for the construction of the administrative office and mill site areas, as well as clearing the water pipeline corridor in preparation for developing the well field and a water distribution system to support heavy construction activities.
The $1.28-billion Mount Hope project is expected to produce 40 million pounds of molybdenum annually.