General Moly (the “Company”) (NYSE MKT and TSX: GMO), the only western exchange listed, pure-play molybdenum mineral development company, announced that it has entered into an Option Agreement and Land Lease Agreement (if the option is exercised) with SRPV, a subsidiary of SolarReserve, LLC of Santa Monica, California for photovoltaic solar energy development at General Moly’s Liberty Project.
The Agreement provides for a three-year option to lease a minimum of 500 acres and easements associated with vacant land owned by the Liberty Project near Tonopah, Nevada. If the option is exercised, the parties will enter into a 30-year lease for up to 700 acres of land, with an option to extend for an additional five years at the end of the initial lease term. The vacant land parcel is wholly owned by the Company, and its use by the photovoltaic solar project will not impact the Liberty Project’s future proposed mining plans.
Bruce D. Hansen, Chief Executive Officer, said:
“We are pleased to collaborate with SolarReserve to promote renewable energy in Nevada. If the option is exercised, we look forward to offsetting a portion of the Liberty Project’s ongoing care and maintenance expenses with lease revenue for land that would not be utilized in our proposed mine plans.
Additionally, we may consider the solar project as a future power source for the proposed Liberty mine, after prospective power purchase agreements are fulfilled.”