Hanlong plans $665 million term loan with General Moly investment

By Sara Rosenberg

New York, March 5 - Hanlong Mining Investment Inc. plans on getting a new $665 million term loan from a prime Chinese bank as part of its agreement to invest in General Moly Inc., according to an 8-K filed with the Securities and Exchange Commission on Friday.

The Hanlong investment is expected to provide full funding for General Moly's 80%-owned Mt. Hope project.

The term loan is expected to price somewhere between Libor plus 200 basis points and 400 bps. The term loan will mature at least 14 years after commercial production begins at the Mt. Hope Project.

Hanlong has also agreed to provide a $20 million bridge loan to General Moly that will be available in two equal $10 million tranches. The first tranche is priced at Libor plus 200 bps and the second one is priced at 10%.

The bridge loan will be repaid from the term loan proceeds. Also, if Hanlong agrees, the second tranche also may be repaid in shares of the company's common stock.

In addition, Hanlong will make an $80 million equity investment in General Moly through the purchase of 25% of the company's fully diluted shares.

Hanlong Mining is a wholly owned subsidiary of Sichuan Hanlong Group, a privately held Chinese company with a wide portfolio of investments. General Moly is a Lakewood, Colo.-based molybdenum mineral development, exploration and mining company.

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