General Moly Inc Announces Supplemental $125 Million Subordinated Debt Facility

General Moly Inc. (NYSE:GMO,TSX:GMO) announced that it has signed a $125 million subordinated debt facility, which will supplement a previously announced $665 million Chinese sourced term loan.

As quoted in the press release:

The terms of the subordinated debt facility with Hanlong include the initial availability of $75 million(Tranche A) during the Mt. Hope Project’s construction period. An additional $50 million (Tranche B) becomes available for the 6 month period post commercial production. The $125 million facility can be reduced to the extent equipment is leased. Consideration to Hanlong will include a fee of $6.25 million, payable upon closing of the CDB term loan or other financing of at least $8 million, plus warrants with a 2.5 year maturity to purchase ten million shares of our common stock.

General Moly’s CEO, Bruce D. Hansen, said:

The Company continues to receive tremendous support from Hanlong in funding the Mt. Hope Project, and we look forward to continuing our work with Hanlong in completing the senior term loan with China Development Bank. We are pleased to have completed this very important component of our Mt. Hope Project finance plan.

To view the whole press release, click here.