CORRECTING and REPLACING General Moly Announces Strategic Relationship with ArcelorMittal



    LAKEWOOD, COLO., November 23 /CNW/ - In c2075 transmitted November 19,
2007, an error occurred in the first bullet point, number of General Moly
common shares should read 8.257 million (instead of 8.239 million), and
percentage of General Moly outstanding shares to be owned by ArcelorMittal
should read approximately 12.7% (instead of 12.6%).

    The corrected release reads:

    GENERAL MOLY ANNOUNCES STRATEGIC RELATIONSHIP WITH ARCELORMITTAL

    General Moly (AMEX:  GMO) announced a strategic relationship with
ArcelorMittal S.A., the world's largest steel producer. Elements of the
relationship include:

    --  An agreement to purchase, via private placement, 8.257 million
General Moly common shares at $8.50 per share, generating approximately $70
million in proceeds. The funds will be primarily utilized in the development
of General Moly's world-class Mt. Hope molybdenum project. The equity
investment will result in ArcelorMittal owning approximately 12.7% of General
Moly outstanding shares (10% of fully diluted shares) as of November 19, 2007
and inclusive of warrants to be issued to Coghill Capital Management as
described below. The stock purchase is expected to close, subject to customary
conditions within 30 days.

    --  A letter of intent to enter into a long-term off-take agreement. This
agreement, subject to final documentation, would allow for the supply of
approximately 6.5 million pounds per year of molybdenum for five years,
beginning once Mt. Hope commences production. The off-take agreement provides
for a floor price significantly higher than estimated cash costs of production
and is offset by a variable discount to spot moly prices above the floor.

    Bruce D. Hansen, Chief Executive Officer of General Moly, said, "This
relationship with ArcelorMittal represents a milestone in the evolution of the
Company and a key strategic element in the Mt. Hope financing and development
strategy. We are extremely pleased to work with ArcelorMittal with a win-win
deal that helps General Moly advance the Mt. Hope project while giving
ArcelorMittal access to production from this world-class project."

    The relationship with ArcelorMittal is a non-exclusive arrangement and
the Company continues to examine other strategic relationship opportunities.

    General Moly's largest shareholder, Coghill Capital Management, was
instrumental in arranging the relationship between the two companies, and,
upon closing of the transaction, will be issued a warrant to purchase one
million shares of General Moly common stock with an exercise price of $10.00
per share. The warrants will be exercisable once General Moly has received
financing necessary for the commencement of commercial production at the Mt.
Hope project and will expire one year afterwards.

    General Moly, formerly Idaho General Mines, is a U.S.-based molybdenum
mineral development, exploration and mining company listed on the American
Stock Exchange under the symbol GMO. Our primary asset, the Mt. Hope project
located in central Nevada, is considered one of the world's largest and
highest grade molybdenum deposits. Combined with our second molybdenum
property, the Hall-Tonopah project which is also located in central Nevada,
our goal is to become the largest primary molybdenum producer by the middle of
the next decade. 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, such as anticipated
timing for closing of the agreements and other transactions contemplated
above, are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, and involve a number of risks and
uncertainties that could cause actual results to differ materially from those
projected, anticipated, expected or implied. These risks and uncertainties
include, but are not limited to, the possibility that the Company and
ArcelorMittal may not be able to successfully negotiate a long-term supply
agreement or other aspects of the strategic relationship described above, or
other anticipated difficulties or interruptions. For a more 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-QSB and
10-KSB, as the same are amended from time to time, on file with the SEC. The
Company undertakes no obligation to update forward-looking statements.




For further information:

For further information: General Moly Investors: Seth Foreman,
303-928-8591 sforeman@generalmoly.com or Business Development: Greg McClain,
303-928-8601 gmcclain@generalmoly.com http://www.generalmoly.com
info@generalmoly.com

Organization Profile

GENERAL MOLY

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890