General Moly Terminates Loan Agreement with Hanlong (USA) Mining

General Moly Inc. (TSX:GMO,AMEX:GMO) provided an update on its finances, noting that it has terminated its $125-million subordinated loan agreement with Hanlong (USA) Mining Investment Inc.; the loan was intended to help finance General’s Mount Hope project and the termination was mutual.

As quoted in the press release:

The subordinated loan agreement, which would have become available upon receipt of the Chinese sourced term loan, was terminated to provide General Moly with greater flexibility in securing an additional Chinese strategic partner. The termination of the subordinated loan agreement also cancels the arrangement fee of $6.25 million payable upon closing of a Chinese sourced term loan. Further, the warrant with a 2.5 year maturity to purchase ten million shares of General Moly common stock at a strike price of $4.23 per share was terminated.

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

Our efforts to secure such a strategic partner are incrementally enhanced by the elimination of these warrants which reduces the potential for future dilution. We are actively marketing the Mt. Hope Project as a fully permitted, construction-ready, high grade / lower cost molybdenum deposit supported by our joint venture partner POS-Minerals, and recently attracted a number of parties in China who are beginning to engage in due diligence.

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