General Moly Receives $100 Million Payment from Joint Venture Member POS-Minerals to Kick Start Mt. Hope

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.

To view the whole press release, click here.