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 Nov. 16.
"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.