General Moly Inc signs sale and purchase agreement with Caterpillar

May 30, 2008 (M2 EQUITYBITES via COMTEX) -- GMO | Quote | Chart | News | PowerRating -- General Moly Inc (AMEX:GMO) (TSX:GMO), a US-based molybdenum mineral exploration and development company, said on 29 May that the company's 80% owned subsidiary has placed orders with Caterpillar's Nevada-based dealer, Cashman Equipment Company, for 24 Caterpillar 793 Haul Trucks (240 tonnes each) for a total purchase price of approximately USD80m.

It has been reported that eight trucks will be delivered to the Mt. Hope site beginning in 2009 to facilitate pre-production development and the remaining 16 trucks will be delivered to site in 2010 and 2011. In conjunction, General Moly Inc has placed orders for 16 flotation cells and three blast hole drills. General Moly Inc stated that it has firm commitments, not subject to escalation or foreign exchange exposure, for approximately USD200m in capital equipment, representing over 60% of the equipment budget for Mt. Hope as of 29 May 2008.

Comments on this story may be sent to admin@m2.com

Morning Coffee with TradingMarkets -- Free Newsletter

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index