NEW YORK General Moly
Inc. is looking for another Chinese financing partner for its
Mount Hope project, and is also extending to November the
maturity date of an outstanding $10-million bridge loan.
The Lakewood, Colo.-based
company is working with Chengdu, China-based Sichuan Hanlong
(Group) Co. Ltd. "to secure another Chinese strategic partner
to help advance the full financing of the Mount Hope project,"
General Moly chief executive officer Bruce Hansen said.
"We feel this path provides the
most promise in the near term given Chinas strategic
long-term view towards moly(bdenum) sourcing (and) our current
exclusivity agreement with Hanlong, and taking into account the
companys advanced stage of loan negotiations with China
Development Bank (CDB)," Hansen said.
The company recently said it was
considering financing alternatives for Mount Hope after
negotiations with Hanlong and CDB over a $665-million loan were
suspended following the reported detention of Sichuan Hanlong
chairman Liu Han (
amm.com, March 21).
General Moly hasnt resumed
negotiations with CDB regarding the loan, a General Moly
spokesman told AMM April 4.
Meanwhile, the company has also
reached an agreement with Hanlong to extend the maturity date
of its outstanding $10-million bridge loan from April 30 to
"The new maturity date
corresponds to the deadline for Hanlongs obligation to
procure the $665-million term loan and is intended to provide
General Moly with greater financial flexibility in the
interim," General Moly said.
"The company has made
substantial progress with regards to our preliminary
construction activities at Mount Hope, including early
well-field development, clearing and grubbing of terrain, and
cultural clearance," Hansen added. "Moreover, we maintain a
strong liquidity position and anticipate reporting an
unrestricted cash position ranging from $54 million to $58
million at the end of the first quarter, with an additional $36
million in restricted cash."
The $1.28-billion Mount Hope project in Nevada is expected
to produce 40 million pounds of molybdenum annually.