Eureka Moly Looks Forward to Upcoming Water Rights Appeal Hearing after Eureka County Rejects Good Neighbor Offer
$12 Million Offer to Augment Existing Sustainability Trust Rejected
EUREKA, Nev.--(BUSINESS WIRE)-- General Moly, Inc. (the "Company") (NYSE Amex and TSX: GMO) today, through its 80% controlled subsidiary Eureka Moly, LLC, announced that the $12 million global settlement offer ("the Good Neighbor Offer") presented on March 6, 2012 to Eureka County and other stakeholders was rejected by Eureka County, without counter-offer. The Good Neighbor Offer was made to principally resolve the outstanding water rights appeal, and was comprised of $3 million to be paid to the Appellants immediately upon signing of an agreement and dismissal of all appeals before the Nevada District Court and $5 million contributed over time to the Diamond Valley Sustainability Trust. The funds were to have augmented the existing $4 million Diamond Valley Sustainability Trust announced in August 2010, and bring the total commitment to $12 million.
At its Tuesday, March 20th meeting, the Eureka County commissioners rejected the Good Neighbor Offer after minimal public discussion and debate, according to Eureka Moly. Additionally, the County had failed to identify to the public that the commissioners would take action on the Good Neighbor Offer in its published public agenda. The Good Neighbor Offer was made by Eureka Moly as a final good faith attempt prior to the upcoming hearing to settle the water dispute with Eureka County and other appellants, concerning the Nevada State Engineers Ruling granting the water applications to be used for the Mt Hope mine project. The Good Neighbor Offer required acceptance by all the stakeholders and Eureka Countys rejection of the global Good Neighbor Offer effectively prevents the other stakeholders from accepting the offer and ending the litigation. Eureka Moly now looks forward to the April 3rd hearing and subsequent ruling of the Nevada District Court.
Bruce D. Hansen, Chief Executive officer, stated, "We reached out and made this offer to Eureka County and its residents as a Good Neighbor, with the goal of working together, to enhance the sustainability and properly manage water resources in both the Kobeh Valley and Diamond Valley water basins. Unfortunately, we are disappointed with the Eureka County commissioners decision to continue down the path of unnecessary spending on legal action which further deprives the community of an opportunity to positively impact a decades old severe over-pumping situation in the Diamond Valley water basin, which has no relationship to the Mt. Hope project. We are moving forward aggressively. As we have stated when the Good Neighbor Offer was presented on March 6th, we remain extremely confident the State Engineer's Ruling will be upheld. At the same time we will always discuss reasonable and rational concepts to resolve this situation.
General Moly (GMO) is a U.S.-based molybdenum mineral development, exploration and mining company listed on the NYSE Amex (formerly the American Stock Exchange) and the Toronto Stock Exchange under the symbol GMO. Our primary asset, our interest in the Mt. Hope project located in central Nevada, is considered one of the world's largest and highest grade molybdenum deposits. Combined with our second molybdenum property, the Liberty project that is also located in central Nevada, our goal is to become the largest primary molybdenum producer by the middle of the decade. For more information on the Company, please visit our website at http://www.generalmoly.com.
Statements herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and are intended to be covered by the safe harbor created by such sections. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected, or implied by the Company. These risks and uncertainties include, but are not limited to, metals price and production volatility, global economic conditions, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, exploration risks and results, political, operational and project development risks, including the Companys ability to obtain required permits to commence production and its ability to raise required financing, adverse governmental regulation and judicial outcomes. The closing of the Hanlong transaction and obtaining bank financing are subject to a number of conditions precedent that may not be fulfilled. For a detailed discussion of risks and other factors that may impact these forward looking statements, please refer to the Risk Factors and other discussion contained in the Companys quarterly and annual periodic reports on Forms 10-Q and 10-K, on file with the SEC. The Company undertakes no obligation to update forward-looking statements.
General Moly, Inc.
Investors and Business Development:
Seth Foreman, 303-928-8591
Zach Spencer, 775-748-6059
Source: General Moly, Inc.Copyright Business Wire 2012