General Moly Inc. announced that the company, through its 80% owned subsidiary, has placed orders for 24 Caterpillar 793 Haul Trucks (240 tons each) through Caterpillar's Nevada-based dealer, Cashman Equipment Company. Total purchase price for the trucks is approximately $80 million and payment is due upon delivery.
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. Tires for the initial eight trucks will be supplied by Caterpillar and General Moly will procure tires for the remaining haul trucks in the future.
The company has also placed orders for 16 flotation cells and 3 blast hole drills. Although the orders for the flotation cells were placed earlier than originally planned, the company was able to avoid a $150,000 steel price increase by placing the orders in early May.
As of May 29th, the company has firm commitments not subject to escalation or foreign exchange exposure for approximately $200 million in capital equipment, representing over 60% of the equipment budget for Mt. Hope.
General Moly is a U.S.-based molybdenum mineral exploration and development company listed on the American Stock Exchange and the Toronto Stock Exchange under the symbol GMO.