General Moly, Inc. (TSE:GMO) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Effective October 14, 2020, General Moly, Inc. (the “Company”) entered into a Settlement Agreement of Separation Payments under Employment Agreement (each, a “Settlement Agreement”) with each of R. Scott Roswell, the Company’s Chief Legal Officer, and Amanda J. Corrion, the Company’s Controller and Principal Accounting Officer, in view of the Company’s contemplation of a voluntary bankruptcy filing.
to Mr. Roswell’s Settlement Agreement, the Company will pay him a lump sum of $191,569.08 in full satisfaction of all separation payments which may be owed to him under his employment agreement, as amended (which could otherwise total up to $531,400), and Mr. Roswell has agreed to release the Company from any additional claims for separation payments. Mr. Roswell has further agreed to continue providing services to the Company as a full-time employee for a period of time as set forth in the Settlement Agreement. If Mr. Roswell is terminated for cause or otherwise fails to provide the requested employment services, he must return his settlement payment.
to Ms. Corrion’s Settlement Agreement, the Company will pay her a lump sum of $121,838.94 in full satisfaction of all separation payments which may be owed to her under her employment agreement (which could otherwise total up to $310,000), and Ms. Corrion has agreed to release the Company from any additional claims for separation payments. Ms. Corrion has further agreed to continue to provide services to the Company as an independent consultant for 20 to 160 hours per month, as requested by the Company, and will be compensated for such services at a rate of $155 per hour. Such consulting services will be provided for a period of time as set forth in the Settlement Agreement
Resignation of Amanda Corrion
On October 16, 2020, Ms. Corrion notified the Company) of her intention to resign from her position as the Controller and Principal Accounting Officer of the Company, effective October 23, 2020. Ms. Corrion will continue to provide consulting services to the Company to the terms of her Settlement Agreement.
The Company has a significant working capital deficit and there remains substantial doubt about the Company’s ability to continue as a going concern. If the Company is unable to find an additional source of funding, it will be forced to cease operations and pursue restructuring or liquidation alternatives, including the filing for bankruptcy protection, in which event the Company’s common stock would likely become worthless and investors would likely lose their entire investment in the Company. In addition, holders of the Company’s outstanding convertible preferred stock and senior notes would likely receive significantly less than the principal amount of their claims and possibly, no recovery at all. As of the date of this filing, the Company has no commitments for additional funding and there can be no assurance that the Company will be successful in obtaining the financing required to complete the Mt. Hope Project, or in raising additional financing in the future on terms acceptable to the Company, or at all.
About General Moly, Inc. (TSE:GMO)
General Moly, Inc. is engaged in the business of the exploration, development and mining of properties containing molybdenum. The Company, through its subsidiary, Eureka Moly, LLC, holds interest in the Mt. Hope Project, a molybdenum property, located in Eureka County, Nevada. The Mt. Hope Project contains molybdenum reserves totaling approximately 1.4 billion pounds of which 1.2 billion pounds are estimated to be recoverable. It also owns a molybdenum and copper project, the Liberty Project, located in Nye County, Nevada. Its other mining properties include over 100 acres of fee simple land in the Little Pine Creek area of Shoshone County, Idaho; six patented mining claims known as the Chicago-London group, located near the town of Murray in Shoshone County, Idaho; 30 unpatented mining claims in Marion County, Oregon, known as the Detroit property, and 80 unpatented mining claims in Sanders and Madison County, Montana.
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