Colorado-based General Moly said that 1 million lb/y sold under the Sojitz arrangement will be subject to a floor price significantly higher than the Mt. Hope estimated cash costs per pound and are offset by a flat discount to spot moly prices above the floor. The remaining 4 million lb/y sold under the agreement will be sold with reference to spot moly prices without regard to a floor price. The floor-price protected pounds will be sold in equal installments on a monthly basis.

Bruce D. Hansen, CEO of General Moly, said, “This off-take arrangement, together with the previously announced arrangements with ArcelorMittal and SeAH Besteel, amount to 11.5 million lb, or nearly 38%, of our anticipated share of production from the Mt. Hope project, protected by floor price arrangements, and approximately one-half of our anticipated share of production being committed for the first five years of operations. With these off-take arrangements in hand, we forecast the ability to more than cover the interest on our projected project debt, even if moly prices fall to the level of our operating costs.”