General Moly architects strategic relationship with ArcelorMittal
Shares of General Moly (AMEX: GMO) are gaining after the molybdenum mining company said after Monday’s close that it formed a strategic relationship with ArcelorMittal S.A., the world's largest steel producer.
Under the terms of the agreement, ArcelorMittal will purchase approximately 8.239 million, or 12.6% of General Moly’s outstanding shares at $8.50 per share. The arrangement will generate approximately $70 million in proceeds and will be used for the development of General Moly's Mt. Hope molybdenum project, according to General Moly.
Specifically, the agreement would allow for the supply of approximately 6.5 million pounds per year of molybdenum for five years, beginning once Mt. Hope commences production.
General Moly also stipulated that its relationship with ArcelorMittal is a non-exclusive arrangement and will continue to scan for other strategic relationship opportunities.
Shares of General Moly (GMO) jumped 11.11%, or $0.94, to $9.40 in pre-market trading. Moly Shares of General Moly have been trading in the range of $ for the past 52 weeks.
