General Moly Closes $4M Tranche 1 Equity Investment

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General Moly, Inc. (the "Company" or "General Moly") (NYSE MKT and TSX: GMO), a U.S.-based molybdenum mineral development, exploration, and mining company, announced it has closed its sale of the first tranche of equity to AMER International Group ("AMER"), for $4 million. The transaction included the issuance of 13,333,333 shares of General Moly common stock at $0.30 per share, representing a 10.5% fully diluted interest (12% of outstanding interest). The closure of this first equity tranche is part of a broader financing commitment originally announced April 17, 2015, as amended in our announcement earlier this month on November 3, 2015, whereby AMER has committed to provide a total of $720 million in financing to General Moly, including a $700 million Chinese bank loan AMER will source and guarantee when there is a demonstrated return from the unsustainably low price of molybdenum. With the closure of tranche 1, AMER will also nominate one director to General Moly's board of directors. In addition, AMER is obligated to purchase 3 million additional shares in a private placement, priced at $0.50 for $6 million, at tranche 2 of the amended Investment Agreement. Closing of tranche 2 is contingent on the Nevada State Engineer restoring permits for the Mt. Hope Project's water rights and for the price of molybdenum to average in excess of $8/lb. for a 30 consecutive calendar day period. Upon a final adjudication of the to be re-issued Mt. Hope Project's water rights permits through courts or settlement, if further protests and appeals result from the issuance of the water permits, and at such time that the price of molybdenum is in excess of $12/lb. for a 30 consecutive calendar day period, AMER is obligated to purchase the final tranche 3 equity investment of 6.8 million shares in a private placement, priced at $0.68 for $10 million. AMER will nominate an additional director to General Moly's board with the closing of each of tranche 3 and following bank loan drawdown, if AMER's ownership percentage is at least 30%. Tranche 2 and tranche 3 may be subject to General Moly stockholder approval. Bruce D. Hansen, General Moly's Chief Executive Officer said, "We are extremely pleased to have this first leg of a long term strategic partnership completed which demonstrates AMER's long term vision of value creation at General Moly as the molybdenum price ultimately recovers to allow for the full financing and development of Mt. Hope. In the interim we will be working with AMER to evaluate and potentially execute upon mutually beneficial acquisition opportunities."
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