COLORADO, Dec. 29 /CNW/ - Hanlong (USA) Mining Investment Inc. ("Hanlong") announces that as of December 20, 2010, it has acquired by way of private placement from General Moly Inc. (NYSE Amex andTSX: GMO) (the "Corporation") 11,843,341 shares of common stock (the "Purchased Shares") for a total consideration of US$40,000,000. The Purchased Shares so acquired constitute 13.9% of the issued and outstanding shares of the Corporation (12.5% of fully diluted interest). These Purchased Shares were issued as the Tranche 1 shares pursuant to a Securities Purchase Agreement made between the Corporation and Hanlong dated March 4, 2010 (the "Purchase Agreement"). Before the acquisition, Hanlong does not hold any share of common stock of the Corporation. Pursuant to the Purchase Agreement, Hanlong has the right and obligation to acquire such number of additional shares which together with the Purchased Shares will amount to 25% of the fully dulited interest of the Corporation at the time and on the conditions as specified in the Purchase Agreement for an additional consideration of US$40 million. Xiao Hui is a director and officer of Hanlong and has all the voting and investment power in respect to the Purchased Shares delegated to him by the board of directors of Hanlong.
The Purchased Shares were acquired in the normal course of Hanlong's investment activities. Hanlong may, directly or indirectly, at any time and from time to time, increase or decrease its beneficial ownership or control or direction of the Corporation's securities depending on future economic or market conditions.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information: For further information:
Hanlong (USA) Mining Investment Inc.
c/o Suite 2903, 9 Castlereagh Street, Sydney
NSW 2000 Australia