General Moly,Inc. (TSE:GMO) Files An 8-K Other EventsItem 8.01 Other Events
Water Rights Settlement
On October15, 2018, General Moly,Inc. (the “Company”) issued a press release announcing additional details of its settlement with Eureka County and the Diamond Natural Resources Protection& Conservation Association (“DNR”) regarding the Company’s applications for water permits for the construction and operation of the Mt. Hope project. Key terms of the settlement include:
· The Company agreed to convey all related water rights for the Mt. Hope molybdenum project at the future cessation of all mining activity to assist Eureka County and the DNR’s efforts to mitigate the pre-existing effects of agricultural groundwater pumping in Diamond Valley.
· Upon the construction of certain power infrastructure and grants of right of way by the Company at the Mt. Hope Project, the Company will work cooperatively with Eureka County to allow the use of and access to such infrastructure to lessen the pre-existing effects of Diamond Valley groundwater pumping and to seek opportunities to improve and implement groundwater monitoring efforts.
· The Company withdrew its protests to Eureka County’s pending applications with the Nevada State Engineer to appropriate water from the Kobeh Valley basin, and at the request of DNR, the Company also agreed to publicly support the proposed Diamond Valley Ground Water Management Plan currently pending before the Nevada State Engineer.
· Upon receipt of the water permits, Eureka Moly, LLC (“Eureka Moly”) will increase its financial contributions to the existing Sustainability Trust Agreement with the Eureka Producers’ Cooperative (“EPC”) in Diamond Valley. Eureka Moly paid $50,000 to EPC upon execution of the settlement and will make a second payment of $50,000 after receipt of the water permits. Additional contributions of $750,000 each will be made both after the commencement of molybdenum production at the Mt. Hope Project and on the one year anniversary of production.
A copy of this press release is attached hereto as Exhibit99.1 to this Current Report on Form8-K.
On October16, 2018, the Company issued a press release announcing that its ongoing exploration drilling intercepted significant high-grade, shallow intervals of zinc mineralization and confirmed the presence of a high-grade copper and silver mineral target at depth at the Mt. Hope skarn area, southeast of the molybdenum deposit. The Company intends to adjust the location and direction of the remaining drill holes in the ongoing drilling program based on the