General Moly, Inc. (the "Company") (NYSE Amex and TSX: GMO) announced that the Company, through its 80%-owned subsidiary, has placed orders for 18 Caterpillar 793 Haul Trucks (250 tons of payload capacity each) through Caterpillar's Nevada-based dealer, Cashman Equipment Company. All 18 trucks will be delivered to and commissioned at the Mt. Hope site beginning in late 2013 and early 2014 to complete mine pre-operation development. The total value of the Caterpillar order, including support equipment, is anticipated to be approximately $75 million.
The Caterpillar haul truck order was originally placed in 2008 and contained price escalators. The total cost of the Caterpillar mobile fleet has been managed to a 5% increase from the 2008 budget, including escalation, offset by an optimized and partially used support equipment fleet.
Following this order, the Company has firm commitments not subject to escalation exposure for approximately $150 million in capital equipment, representing approximately 40% of the equipment budget for Mt. Hope.
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.
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.
Investors and Business Development:
Seth Foreman, 303-928-8591
Zach Spencer, 775-748-6059