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 annually.