General Moly Closes $8.535-million Private Placement

General Moly Inc. (TSX:GMO,NYSEMKT:GMO) announced that it’s closed the private placement it announced on December 23, 2014 for gross proceeds of $8.535 million. The money will be used for general corporate purposes and for maintenance of the company’s Mt. Hope and Liberty projects.

As quoted in the press release:

The Company sold 85,350 units for $100 each. Each unit consists of one senior convertible note due 2019 (the ‘Notes’) with principal value of $100 and 100 five-year warrants to purchase the Company’s common stock at $1.00 per share. The Notes, which are senior to any General Moly debt obligations, mature on December 26, 2019, and have a 10% coupon rate payable quarterly. The Notes convert into common stock at a 20% discount to the greater of (i) the trailing 30-day volume weighted average price (‘VWAP’) at the date on which a Notice of Conversion is issued and (ii) the trailing 30-day VWAP as of December 22, 2014. Each Note will convert into a maximum of 100 shares per note, resulting in the issuance of 8,535,000 shares, or 9.3% of shares outstanding. General Moly’s executive management team and board of directors who participate in the offering will be restricted from converting at a price less than $0.32, the most recent closing price at the time that the Notes were issued.

Bruce D. Hansen, CEO of General Moly, commented:

The financing provides the Company with a bridge to a project financing for Mt. Hope while minimizing the dilution to our shareholders. The Private Placement included one $5 million block purchased by an investor with significant experience in the molybdenum sector, and General Moly’s executive management team and board of directors which invested over $2 million in aggregate. We believe that the investment made by our management team and board of directors provides a strong statement of support for the future prospects of General Moly.

Click here to read the full General Moly Inc. (TSX:GMO,NYSEMKT:GMO) press release.