General Moly,Inc. (TSE:GMO) Files An 8-K Entry into a Material Definitive Agreement

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General Moly,Inc. (TSE:GMO) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement

On February28, 2018, Eureka Moly, LLC (the “LLC”) and Mount Hope Mines,Inc. (“MHMI”) entered into a Second Amendment dated effective January15, 2018 (the “Second Amendment”) to the Lease Agreement dated effective October19, 2005, as amended by the First Amendment dated effective November20, 2007 (the “Lease Agreement”). The Second Amendment provides that following commencement of commercial production of any non- molybdenum minerals at the Mt. Hope Project, the LLC will pay a production royalty to MHMI as follows:

· For zinc, the production royalty shall be equal to (i)4.0% of net returns when the average gross value for the calendar quarter is less than or equal to $2.00 per pound; (ii)4.5% of net returns when the average gross value is between $2.01 and $2.49 per pound; and (iii)5.0% of net returns when the average gross value is $2.50 per pound or greater; and

· For all other non-moly minerals, the production royalty shall be equal to 4.0% of net returns.

If commercial production of non-moly minerals commences before commercial production of molybdenum, the Second Amendment provides that the LLC’s obligation to pay the annual advance royalty under the Lease Agreement will continue until the LLC has paid MHMI an aggregate of $3 million in non-moly production royalties in a three-year period. After this threshold is met, then payment of the advance royalty may be deferred in whole or in part if the non-moly production royalty exceeds specified levels. After non-moly production royalties have exceeded $10,000,000, future payments may be credited against future production royalties under certain circumstances.

The foregoing description of the Second Amendment is qualified in its entirety by reference to the full text of such document, which is attached hereto as Exhibit10.1.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits


General Moly, Inc Exhibit
EX-10.1 2 a18-7324_1ex10d1.htm EX-10.1 Exhibit 10.1   SECOND AMENDMENT TO LEASE AGREEMENT   THIS SECOND AMENDMENT TO LEASE AGREEMENT (“Second Amendment”) is made effective January 15,…
To view the full exhibit click here

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.