General Moly’s Q3 Net Income Boosted by Hanlong Deal Termination

General Moly Inc. (TSX:GMO,NYSEMKT:GMO) announced its unaudited financial results for its third quarter, which ended on September 30, 2013. Its net income came in at $2.6 million, or $0.03 per share, up from a net loss of $2.1 million, or $0.02 per share, in the year-ago period.

As quoted in the press release:

The primary reason for the $2.6 million net income during the third quarter was the non-cash accounting treatment associated with the termination of the Securities Purchase Agreement (“Agreement”) between the Company and Hanlong (USA) Mining (“Hanlong”).

In August, 2013, the Company notified Hanlong that it was terminating the Agreement as a result of Hanlong’s failure to procure the China sourced Bank Loan. Hanlong acknowledged the termination, and consented to offset its break fee obligation against the repayment of the Bridge Loan.

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

We are actively pursuing financing options in Asia as well as considering a variety of other financing alternatives including equity investments, project level investments and debt financings that we believe are executable. The Company is focused on securing a path forward that minimizes dilution, long term cost and risk to stockholders.

To support ongoing due diligence efforts the Company is updating its resource models, mine plan and project economics. This updating effort is expected to be complete in November and will assist in the financing effort.

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