[Ferro-Alloys.com] General Moly, Inc. (the "Company") (nyse mkt and tsx:GMO), a U.S.-based molybdenum mineral development, exploration and mining company, provided an update on finance activities.

 

On May 14, 2013, General Moly and Hanlong (USA) Mining ("Hanlong") mutually agreed to terminate a $125 million subordinated loan agreement intended to supplement a $665 million Chinese sourced term loan for the financing of the Mt. Hope Project. The subordinated loan agreement, which would have become available upon receipt of the Chinese sourced term loan, was terminated to provide General Moly with greater flexibility in securing an additional Chinese strategic partner. The termination of the subordinated loan agreement also cancels the arrangement fee of $6.25 million payable upon closing of a Chinese sourced term loan. Further, the warrant with a 2.5 year maturity to purchase ten million shares of General Moly common stock at a strike price of $4.23 per share was terminated.

 

Bruce D. Hansen, Chief Executive Officer of General Moly, said, "Hanlong's cooperation and assistance is appreciated as we move forward to secure another Chinese strategic partner capable of advancing the full financing of the Mt. Hope Project and reinvigorating advanced stage loan negotiations with China Development Bank."