General Moly, the U.S. molybdenum producer, announced that it had been told by Sichuan Hanlong Group (Hanlong) that the Chinese company has received formal approval from the Chinese National Development and Reform Commission (NDRC) to invest in General Moly.
The Mt. Hope project is one of the world's largest and highest grade undeveloped molybdenum projects. The project is owned 80% by General Moly and 20% by POSCO through a joint venture. Image Credit: General Moly
This is a component of an overall structure to fully finance General Moly's 80%-owned share of the Mt. Hope project. The funds will be used by the company to resume engineering and procurement as well as the publication of the Draft Environmental Impact Statement or DEIS of the project.
Bruce D. Hansen, Chief Executive Officer of General Moly, said that the NDRC approval represented another key milestone reached in the overall finance and development plan of the world class Mt Hope molybdenum project.
The completetion and publication of the DEIS will see General Molly close the initial 12.5% fully diluted share sale to Hanlong for U.S.$40 million. It would also begin the public review period for the project which is the last stage of federal permitting for Mt Hope.
Hanlon would pay an additional U.S.$ 40 million to increase its interest in General Molly to 25% after receipt of its Record of Decision or ROD. The ROD is anticipated in mid 2011 by General Molly.