Courtesy of Benzinga.
On July 31, 2012, General Moly (NYSE: GMO) announced an update to the Mt. Hope Project’s capital cost estimate, which has increased by $130 million or 11% in total. In addition, the Company has entered into a non-binding letter of intent with Hanlong (USA) Mining (“Hanlong”) to provide additional capital to the Mt. Hope Project, which is anticipated to meet the incremental project funding requirements.
The Company has completed its review of capital cost requirements for the Mt. Hope Project based on current major equipment, labor, and material pricing and further engineering definition. The project capital was also updated for currently known permitting and regulatory requirements and includes the schedule impacts of permitting delays since the previous September 2008 feasibility study update, which was reconfirmed in November, 2009. The Mt. Hope Project has not materially changed in scope and is currently designed at 60% engineering completion with solid scope definition. Over this 4 year period, the overall capital requirement estimate now totals $1,284 million of which $197 million has already been spent. General Moly’s 80% share of the increase is $104 million.
