General Moly Inc (TSX:GMO, NYSE:GMO) announced that its subsidiary Eureka Moly, LLC received a third contribution payment in the amount of $56 million from POS-Minerals . Also, POS-Minerals delivered a catch-up contribution in the amount of $44 million. These funds are to be used to begin construction at the Mt. Hope Project.
As quoted in the press release:
The members of Eureka Moly, General Moly and POS-Minerals, agreed that $36 million of the $100 be held in a reserve account to maintain liquidity pending confirmation of the $665 million General Moly Term Loan. General Moly announced that China Development Bank had confirmed the basic terms underlying this proposed $665 million Term Loan on February 16, 2012.
General Moly’s CEO, Bruce Hansen said:
We continue to target Spring 2013 for receipt of China Development Bank funding. This coincides with the terrain at Mt. Hope being adequately thawed to initiate heavy construction.