General Moly, a U.S.based molybdenum mining company, has announced an investment and security purchase agreement with AMER International Group, a Chinese-based downstream metals refining provider.
Under the terms of the agreement AMER has entered into a private placement for 40 million common shares of General Moly and AMER and General Moly will enter into a stockholder agreement allowing AMER to nominate directors, and also relating to AMER's acquisition and transfer of General Moly shares.
AMER has also agreed to work with General Moly to procure and support a senior secured term loan of approximately US$700 million from a major Chinese bank or banks for development of its Mt. Hope molybdenum mine.
Long term supply
‘AMER is pleased to create a long-term partnership with General Moly through this strategic investment,’ said Wang Wenyin, chairman of AMER International Group. ‘We regard the Mt. Hope and Liberty projects as two of the most promising molybdenum assets worldwide, and highly complementary to our copper and tungsten operations, as well as our production of fine machining and advanced cable products. This transaction is critical for advancing our goal of securing a long term supply of high-grade, low cost molybdenum in a stable jurisdiction.’