CARLSBAD, Calif. General
Moly Inc. is considering financing alternatives for its Mount
Hope project after negotiations with China Development Bank
(CDB) and Sichuan Hanlong (Group) Co. Ltd. over a $665-million
loan were suspended following the reported detention of Sichuan
Hanlong chairman Liu Han.
Liu is being detained in Beijing
for undisclosed reasons while his family is said to be in
police custody in Sichuan province, according to reports from
Chinese and Australian news outlets.
The suspension of negotiations
with CDB over the loan, earmarked for development of General
Molys Mount Hope project, are related to the reports of
Hans detention, as "Hanlong or an affiliate is obligated
to arrange and guarantee the term loan, throughout its life,"
the company said March 21.
"We have been making good
progress negotiating the term loan and are disappointed that
this work has been suspended until further clarification is
received from Hanlong. We hope to re-establish term loan
negotiations with Hanlong and CDB in the near term, but will
concurrently assess other financing alternatives," General Moly
chief executive officer Bruce Hansen said in a statement.
Perth, Australia-based Moly
Mines Ltd. also said March 20 that it was "seeking
clarification" from Hanlong as to whether it would be affected
by Hans detention (
amm.com, March 20). Hanlong holds a 56.8-percent
stake in Moly Mines.
Lakewood, Colo.-based General
Moly said Feb. 19 that it was aiming to have the $665-million
loan completed and approved by mid-2013 (
amm.com, Feb. 19), with preliminary construction
activities at Mount Hope having commenced in January (
amm.com, Jan. 9).
The $1.28-billion Mount Hope
project is expected to produce 40 million pounds of molybdenum