NEW YORK General Moly
Inc. said it is looking to reinvigorate stalled loan
negotiations as the company continues its search for another
Chinese strategic partner to finance its Mount Hope molybdenum
project in Nevada.
The Lakewood, Colo.-based
company posted a first-quarter net loss of $3 million, down 6.3
percent from a $3.2-million loss in the same period last year.
Excluding restricted cash, the companys cash balance at
March 31 was approximately $57 million vs. $68 million at the
end of 2012.
The company recently announced
that it was working with Chengdu, China-based Sichuan Hanlong
(Group) Co. Ltd. to secure another Chinese financing partner
for its Mount Hope project (
amm.com, April 4) after negotiations with Hanlong
and China Development Bank for a $665-million loan were
suspended following the reported detention of Sichuan Hanlong
chairman Liu Han (
amm.com, March 21).
The company currently is looking
to "reinvigorate advanced-stage loan negotiations with China
Development Bank," General Moly chief executive officer Bruce
Hansen said in a statement.
"Our efforts to secure such a
strategic partner are enhanced, given that we are advancing a
fully permitted, construction-ready, high-grade, low-cost
molybdenum deposit," he said. "As we continue our efforts
towards full financing at Mount Hope, the company will continue
to prudently manage our unrestricted cash position of $57
million at the end of the first quarter with an additional $36
million in restricted cash."
General Moly said that about
1,800 acres have been cleared and grubbed at the Mount Hope
site in preparation for starting major earthworks, while
engineering is approximately 64-percent complete.
The $1.28-billion Mount Hope
project is expected to produce 40 million pounds of molybdenum