LAKEWOOD, Colo.--(BUSINESS WIRE)--

General Moly, Inc. (the "Company" or “General Moly”) (NYSE MKT and TSX: GMO), a U.S.-based molybdenum mineral development, exploration, and mining company, announced its unaudited financial results for the second quarter ended June 30, 2014. Net loss for the three months ended June 30, 2014 was $2.8 million ($0.03 per share), compared to a loss of $14.3 million ($0.16 per share) for the year ago period.

Excluding restricted cash, the Company’s cash balance at June 30, 2014 was approximately $12 million compared to $22 million at December 31, 2013 and $17 million at March 31, 2014. During the second quarter, cash use of $5 million was the result of $3 million spent on Mt. Hope Project development costs (process equipment, engineering, procurement, owner’s cost, and reclamation bond premiums) as well as $2 million in general and administrative expenses and Liberty Project Pre-Feasibility study related expenditures. In December 2012, the Company and POS-Minerals, as the members of Eureka Moly, LLC (“EMLLC”), agreed to hold, as restricted cash, $36 million due to the Company, of the approximately $100 million received from POS-Minerals’ December, 2012 contributions. These funds will be held in a reserve account until the Company arranges full project financing for its 80% share of Mt. Hope Project construction cost, or until the EMLLC management committee agrees to release the funds.

Bruce D. Hansen, Chief Executive Officer of General Moly, said, "Year-to-date we have completed the critically important work of refreshing NI 43-101 reports for our two world-class assets, Mt. Hope and Liberty. Updated estimates on production, capital, operating cost, and economics highlight the robust economics of these projects and assist us greatly as we explore a variety of financing alternatives for Mt. Hope development and to advance the Liberty Project through full feasibility and permitting.”

Mr. Hansen added, “Interest in Mt. Hope from potential strategic investors, both in and outside of China, has increased in tandem with an improving molybdenum price currently trading around $13 per pound. We continue to have substantive dialogue with potential partners who could support a debt package to provide the bulk of the Mt. Hope capital requirements. In addition, as we further progress Liberty, we anticipate shareholders and potential strategic investors will more fully realize the inherent value of this project, as well. As we proceed, the Company will continue to prudently manage its liquidity position.”

MT. HOPE PROJECT WATER RIGHTS AND PERMIT APPEALS UPDATE

Two challenges of the Mt. Hope Project’s water permits and Management, Monitoring & Mitigation (“3M”) Plan were separately appealed to the Nevada Supreme Court (“Supreme Court”) and consolidated by the Supreme Court into one appeal. Briefing has been completed, and oral argument challenging the water permits and 3M Plan was heard on June 30, 2014 by the Supreme Court. A ruling is expected in late 2014.

In February 2013, two parties filed a Complaint challenging issuance of the Record of Decision (“ROD”) for the Mt. Hope Project. The federal District Court in Nevada (“District Court”) approved EMLLC’s request to intervene in the Complaint. Briefing by the parties was completed in the first quarter of 2014. On July 23, 2014, the Court denied the two parties motion for summary judgment in its entirety. On August 1, 2014, following the denial of summary judgment, the District Court entered judgment against the two parties regarding all claims raised in the Complaint. The Plaintiffs will have sixty days from the entry of Judgment or September 30, 2014 to file a notice to appeal the District Court’s decision to the Ninth Circuit Court of Appeals.

All permits remain in effect. The Company intends to vigorously defend the legal challenges to the water permits and the 3M plan and any additional appeal to the ROD, and we believe the Mt. Hope Project's permits will be upheld after judicial review.

MT. HOPE PROJECT ENGINEERING AND EQUIPMENT PROCUREMENT UPDATE

Engineering is approximately 65% complete at the Mt. Hope Project. Through June 30, 2014, EMLLC has made deposits of $74.1 million on equipment orders and has paid $12.0 million into an escrow arrangement for electricity transmission services.

EMLLC has now ordered or purchased most of the long-lead milling equipment, haul trucks, mine production drills and has a letter of intent for the purchase of two electric shovels.

Approximately 70% of the planned spend on process equipment has been defined through hard bids and purchase orders and the cost for this equipment is estimated to remain on budget. Further, approximately 80% of planned spend on mining equipment has been committed with cancelable purchase orders, the cost for which is also estimated to remain on budget. Some of the mining equipment committed spend is subject to Producer Price Index-based escalation and additional holding costs if there are extended delays, and some agreements would be subject to cancellation. The Mt. Hope Project remains in a construction-ready status pending full project financing.

LIBERTY PROJECT UPDATE

In July, 2014, the Company reported updated economics on a look forward basis for General Moly’s 100% ownership in the Liberty Project, using a $15.00 per pound flat long-term molybdenum price, a $3.25 per pound flat long-term copper price, and an 8% discount rate, resulting in an after-tax Net Present Value (“NPV”) of $325 million and an internal rate of return (“IRR”) of 17.4%. The Liberty Project is NPV breakeven at an approximate $11.64 per pound molybdenum price and undiscounted cash flow breakeven at approximately $9.58 per pound molybdenum price. If the Liberty molybdenum concentrates could be toll roasted at General Moly’s Mt. Hope mine, once built, the NPV of Liberty would increase by $36 million to $361 million, the IRR would increase to 18.4%, and the first 5 year’s total cash cost would improve to $7.41 per pound.

The Company forecasted operating costs for the Liberty Project based on current labor rates and input commodity prices over the first full five years of operation to average $6.32 per pound for on-site cash costs, using copper as a by-product credit. Total cash costs are estimated at $7.79 per pound for the first five-years, including off-site roasting, smelting, and shipping.

Total constructed project capital cost is estimated at $366 million, reflecting the use of extensive pre-existing infrastructure. This compares to the approximate $600 million (in 2011 dollars) capital cost estimate in our November, 2011 Liberty PFS which planned for a 36,000 tons per day mill throughput. The updated mine plan allows us to leverage significant pre-existing infrastructure to reduce initial capital costs while retaining the capability to expand post startup and reduce operating costs. Annual salable production of approximately 14.0 million pounds of molybdenum and 7.5 million pounds of copper per year for first five-year’s average, based on a mill capable of processing 26,500 tons per day is expected. The updated mine plan results in a total of 402 million pounds of molybdenum and 308 million pounds of copper to be produced over the Life of Mine with total contained molybdenum grade of 0.078% and total contained copper grade of 0.098%.

The infrastructure already in place at Liberty includes a truck shop, offices, tailing dam, laboratory, and previously mined open pit. The site is accessed through paved roads, has fully permitted water rights, and sits adjacent to utility power. The previous mining operations, by Anaconda and Cyprus Minerals, provided significant operating history to validate mining and metallurgical performance. The site is largely on privately held ground, has no royalties, and provides an opportunity for initial permitting under Nevada State agencies, potentially avoiding lengthier federal upfront permitting. However, federal permits will be required to fully exploit the mineral potential due to Bureau of Land Management holdings near the mine and stockpiles.

Additional information on the Company’s second quarter 2014 results will be available in General Moly’s 2014 Form 10-Q, which will be filed with the Securities and Exchange Commission and posted on the Company’s website.

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General Moly is a U.S.-based molybdenum mineral development, exploration and mining company listed on the NYSE MKT (formerly the NYSE AMEX) and the Toronto Stock Exchange under the symbol GMO. The Company’s 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 the Company’s second project, the Liberty Project, a molybdenum and copper property also located in central Nevada, our goal is to become the largest pure play primary molybdenum producer in the world. 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 maintain required permits to continue construction, commence production and its ability to raise required project financing, adverse governmental regulation and judicial outcomes, including appeal of the Record of Decision and appeal of water permits and estimates related to cost of production, capital, operating and exploration expenditures. 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.