BLM Accepts General Moly Reclamation Bonding for Mt. Hope Project, Grants Authorization to Proceed with Construction
General Moly, Inc. (the "Company") (NYSE: GMO), a U.S.-based molybdenum mineral development, exploration and mining company, announced through its 80% owned Mt. Hope subsidiary, Eureka Moly, LLC, that the Bureau of Land Management (“BLM”) has accepted its reclamation bonding for the Mt. Hope Project and has granted authorization to proceed with surface disturbing activities.
A group of surety underwriters arranged by Marsh USA Inc. were assembled to satisfy financial guarantees required by the BLM's reclamation cost estimate in the Mt. Hope Record of Decision (“ROD”). The surety program has been funded with an initial cash payment of $5.6 million and requires additional cash funding of $11.6 million through the construction process for a total of $17.2 million which is in alignment with the net cash bonding cost included in the August 2012 capital estimate. This total covers the first three years of estimated surface disturbance at Mt. Hope, and is subject to ongoing evaluation thereafter. With the surety program in place and the initial contribution funded, the BLM has authorized that surface disturbance in conformity with the Record of Decision may proceed.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.