General Moly Issues Financing Update, Informed Legal Counsel Has Suspended Work on Chinese Sourced Term Loan
General Moly, Inc. (the "Company") (NYSE: GMO) a U.S.-based molybdenum mineral development, exploration and mining company has been informed that legal counsel has suspended work on the $665 million Chinese sourced Term Loan that is currently being negotiated with China Development Bank (“CDB”) for the development of the Mt. Hope Project until further notice. This suspension of activities relates to media reports that Mr. Liu Han, Chairman of Sichuan Hanlong Group (“Hanlong”) has reportedly been detained by Chinese authorities. Hanlong or an affiliate is obligated to arrange and guarantee the Term Loan, throughout its life.
General Moly is seeking clarification from Hanlong as to the implications for the Company and will advise the market should these enquiries render any relevant information.
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