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8-K - CURRENT REPORT - General Moly, Inc | gmo_8k.htm |
Exhibit 99.1
General Moly Announces NYSE American Suspends Trading in
Common
Stock and Commences Delisting Proceedings
LAKEWOOD, COLORADO, October 1,
2020 – General Moly, Inc. (the “Company”) (TSX: GMO), the
only western-exchange listed, pure-play molybdenum mineral
development company, today announced that that
the staff of NYSE Regulation has determined to commence proceedings
to delist the Company’s common stock from the NYSE American
Exchange. Trading in the Company’s common stock has been
suspended.
As previously announced, the Company is currently below compliance
with the $2 million, $4 million, and $6 million stockholders’
equity requirements of Sections 1003(a)(i), (ii), and (iii) of the
NYSE American Company Guide (the “Company Guide”),
respectively. The Company
informed the Exchange that it does not intend to submit a business
plan that would result in compliance with the applicable Exchange
continued listing requirements. As a result, NYSE Regulation has
determined that the Company is no longer suitable for listing
pursuant to Section 1009 of the Company Guide. In addition, the
Company had also fallen below the low selling price requirement of
Section 1003(f)(v) of the Company Guide.
The NYSE American will apply to the Securities and Exchange
Commission to delist the Company’s securities upon completion
of all applicable procedures, including any appeal by the Company
of the NYSE Regulation staff’s decision.
The Company has a significant working capital deficit and there
remains substantial doubt about the Company’s ability to
continue as a going concern. If the Company is unable to find an
additional source of funding, it will be forced to cease operations
and pursue restructuring or liquidation alternatives, including the
filing for bankruptcy protection, in which event the
Company’s common stock would likely become worthless and
investors would likely lose their entire investment in the Company.
In addition, holders of the Company's outstanding convertible
preferred stock and senior notes would likely receive significantly
less than the principal amount of their claims and possibly, no
recovery at all. As of the date of this news release, the Company
has no commitments for additional funding and there can be no
assurance that the Company will be successful in obtaining the
financing required to complete the Mt. Hope Project, or in raising
additional financing in the future on terms acceptable to the
Company, or at all.
About General Moly
General
Moly is a U.S.-based, molybdenum mineral exploration and
development company listed on the Toronto Stock Exchange under the
symbol GMO. The Company’s primary asset, an 80% interest in
the Mt. Hope Project located in central Nevada, is considered
one of the world’s largest and highest grade molybdenum
deposits. General Moly’s goal is to become the largest
primary molybdenum producer in the world.
Molybdenum
is a metallic element used primarily as an alloy agent in steel
manufacturing. When added to steel, molybdenum enhances steel
strength, resistance to corrosion and extreme temperature
performance. In the chemical and petrochemical industries,
molybdenum is used in catalysts, especially for cleaner burning
fuels by removing sulfur from liquid fuels, and in corrosion
inhibitors, high performance lubricants and polymers.
Contact:
Scott
Roswell
(303)
928-8591
info@generalmoly.com
Website:
www.generalmoly.com
Forward-Looking Statements
Statements
herein that are not historical facts are “forward-looking
statements” within the meaning of Section 27A of the
Securities Act, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended and are intended to be covered by
the safe harbor created by such sections. Such
forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected, or implied by the
Company. These risks and uncertainties include, but are not
limited to availability of cash to continue ongoing operations and
the possibility of seeking bankruptcy protection, that COVID-19 is
having and will continue to have an effect on financing efforts to
improve liquidity, availability of insurance, metals price and
production volatility, global economic conditions, currency
fluctuations, increased production costs and variances in ore grade
or recovery rates from those assumed in mining plans, exploration
risks and results, reclamation risks, political, operational and
project development risks, ability to maintain required federal and
state permits to continue construction, and commence production of
molybdenum, copper, silver, lead or zinc, ability to identify any
economic mineral reserves of copper, silver, lead or zinc; ability
of the Company to obtain approval of its joint venture partner at
the Mt. Hope Project in order to mine for molybdenum, copper,
silver, lead or zinc, ability to raise required project financing
or funding to pursue an exploration program related to potential
copper, silver lead or zinc deposits at Mt. Hope, ability to
respond to adverse governmental regulation and judicial outcomes,
and ability to maintain and /or adjust estimates related to cost of
production, capital, operating and exploration expenditures.
For a 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-Q and 10-K, on file with
the SEC. The Company undertakes no obligation to update
forward-looking statements.