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Investments To Advance Development Of Mt. Hope

LAKEWOOD, CO - General Moly, Inc. reported a significant Investment and Security Purchase Agreement with AMER International Group (“AMER”), a private, Chinese-based multinational company that is one of the world’s largest advanced materials, fine machining, and downstream metals refining providers will also create a strategic partnership and equity investment to assist with General Moly’s ability to secure full project financing for the Mt. Hope Project.
AMER entered into a private placement for 40 million common shares of General Moly, priced using the trailing 90-day volume weighted average price (“VWAP”) of $0.50 on April 17, 2015, the date the investment agreement was signed. General Moly anticipates the shares for this equity investment to be issued following approval of stockholders. In addition, AMER and General Moly will enter into a stockholder agreement allowing AMER to nominate directors, and also relating to AMER’s acquisition and transfer of General Moly shares.
AMER has agreed to work with General Moly to procure and support a senior secured term loan (“Bank Loan”) of approximately $700 million from a major Chinese bank or banks for development of the Mt. Hope Project. AMER will guarantee the Bank Loan, which is anticipated to have normal and customary covenants and security arrangements. When drawdown of the Bank Loan becomes available, 80 million warrants to purchase common shares of General Moly will become exercisable by AMER based on the 90-day VWAP of $0.50 from when the investment agreement was signed.
AMER and General Moly agreed on substantial terms of a definitive agreement that would provide a one-time option exercisable simultaneously with Bank Loan execution to purchase the balance of General Moly’s share of Mt. Hope molybdenum production, estimated to be approximately 16.5 million pounds annually, for the first five years of production, and 70% of General Moly’s annual share of Mt. Hope molybdenum production thereafter.
Bruce D. Hansen, Chief Executive Officer, said, “I am pleased and gratified to build this new partnership with AMER, one of the world’s largest advanced materials, downstream metals refining, and fabrication companies. This transaction is a major catalyst for General Moly as it provides a sizable component of our expected equity requirement and greatly strengthens our potential to access global financial institutions, particularly Chinese banks, to finance a significant portion of the remaining capital necessary for the development of the Mt. Hope Project. Overall, we regard this alliance as a substantial step forward for General Moly’s goal to being fully financed and constructed at Mt. Hope.