05/14/2019 | Press release | Distributed by Public on 05/14/2019 04:40
General Moly, Inc. (NYSE: GMO) announced that the Mt. Hope Project joint venture company, Eureka Moly, LLC, ('EMLLC) has entered into a settlement agreement with a Kobeh Valley, Nevada ranching family ('Ranchers'), resolving the last set of protests pending before the Nevada State Engineer pertaining to the Mt. Hope Project's water rights applications.
With this settlement and upon satisfaction of all associated conditions, the Ranchers have agreed to withdraw all of their protests and forfeit any rights to judicial review of the Nevada State Engineer's anticipated approval of the water applications and issuance of water permits. Additionally, the Ranchers have agreed not to oppose any other proceedings with any state or federal agency related to the Mt. Hope Project.
Under this settlement, General Moly is working with the Nevada State Engineer to address potential permit terms for approval of the applications and receiving the water permits. EMLLC which operates the Mt. Hope Project, is owned 80% by General Moly and 20% by POS-Minerals Corporation, a subsidiary of POSCO of South Korea.
General Moly previously reached a settlement on protests filed by Eureka County and Diamond Natural Resources Protection & Conservation Association ('DNR') at the start of the public hearing on the water applications before the Nevada State Engineer, which was completed in September 2018. With the settlement, Eureka County and DNR withdrew their protests and were excused from the hearing. Further details are in the Company's October 15, 2018 news release.)
When operational the Mt. Hope moly mine will be one of the largest primary moly mines in the world for potentially decades. Thus, throughout the Mt. Hope permitting process, over more than 10 years, General Moly has conscientiously sought to resolve protest issues by engaging with concerned parties in an open, fair, and fact-based dialogue, seeking viable long-term solutions while protecting the project's economic value for all shareholders.
Progressing Towards a Fully Permitted Mt. Hope Project in 2019
Bruce D. Hansen, Chief Executive Officer of General Moly, remarked, 'We are extremely pleased to have reached a compromise settlement with the Ranchers and have now resolved all remaining protests filed with the Nevada State Engineer to the water permit application for the Mt. Hope Project. We will continue to focus on the future development of the Mt. Hope moly mine for the economic betterment of the broader community and the state of Nevada.'
Commenting on the future, Mr. Hansen added, 'We look forward to an even closer working partnership with our largest shareholder AMER International Group ('AMER') with their anticipated further investment into our Company through the Tranche 3 $10 million private placement, conditioned upon the receipt of the Mt. Hope Project water permits. We are on the cusp of having the Mt. Hope Project fully permitted as the federal Bureau of Land Management is finalizing its review of public comments recently received on the draft Supplemental Environmental Impact Statement and preparing a final Supplemental Environmental Impact Statement ahead of issuing the anticipated Record of Decision later this year.'