General Moly(the “Company”) (NYSE MKT and TSX: GMO), the only western exchange listed, pure-play molybdenum mineral development company, and its largest shareholder AMER International Group (“AMER”) announced that they will extend the date to close the second tranche of the parties’ three-tranche financing agreement to October 16, 2017, approximately two weeks from the previous close date of September 30, 2017.
All other aspects of the parties Amendment No. 2 to Investment and Securities Purchase Agreement (Amendment No. 2) announced on August 8, 2017 remain unchanged.
Upon close of Tranche 2, General Moly will issue 14,634,146 shares to AMER, priced at the volume weighted average price (“VWAP”) for the 30-day period ending August 7, 2017 (date of Amendment No. 2) of $0.41 per share for a private placement of $6.0 million by AMER.
Tranche 3 is a $10.0 million private placement for 20 million shares, priced at $0.50 and conditioned upon the reissuance of water permits for the Mt. Hope Project or the earlier completion of a joint business opportunity involving issuance of more than 10.0 million shares of GMI common stock. Tranche 3 may be subject to General Moly stockholder approval.