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
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
Engineer′s 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 County′s 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 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.
Forward-Looking Statements
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 Company′s 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
Company′s 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
sforeman@generalmoly.com
or
Media:
Zach
Spencer, 775-748-6059
zspencer@generalmoly.com
http://www.generalmoly.com
info@generalmoly.com
