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Article: General Moly Announces Letter of Intent for Formation of Joint Venture With POSCO for Mount Hope Project.
- Article from:
- Business Wire
- Article date:
- December 18, 2007
CopyrightCOPYRIGHT 2007 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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LAKEWOOD, Colo. -- General Moly, Inc. (AMEX:GMO) announced that it has entered into a letter of intent with POSCO, the world's third largest steel producer, pursuant to which POSCO will have the right to acquire a 20% interest in General Moly's Mount Hope molybdenum project (the "Mount Hope Project"), subject to negotiation and execution of final documentation. In order to facilitate the investment, General Moly intends to form a new entity that will operate the Mount Hope Project on a joint venture basis. Pursuant to the letter of intent, it is anticipated that POSCO will make equity contributions to the joint venture totaling $170 million. Payments by POSCO are ...