General Moly, Inc. the only western exchange listed, pure-play molybdenum mineral development company, and its largest shareholder AMER International Group will extend the date to close the second tranche of the parties' three-tranche financing agreement to Oct. 16, approximately two weeks from the previous close date of Sept. 30.All other aspects of the parties Amendment No. 2 to Investment and Securities Purchase Agreement (Amendment No. 2) announced on Aug. 8 remain unchanged. Upon close of Tranche 2, General Moly will issue 14,634,146 shares to AMER, priced at the volume weighted average price for the 30-day period ending Aug. 7, of $0.41 per share for a private placement of $6.0 million by AMER. Tranche 3 is a $10 million private placement for 20 million shares, priced at $0.50 and conditioned upon the reissuance of water permits for the Mt. Hope Project or the earlier completion of a joint business opportunity involving issuance of more than 10.0 million shares of GMI common stock. Tranche 3 may be subject to General Moly stockholder approval.
Additionally, on Sept. 27, the Nevada Supreme Court issued its opinion affirming the Nevada District Court's March 2016 order, which vacated the water permits concerning the Mt. Hope Project. The Company and the Nevada State Engineer had challenged the District Court's Order last year.
In 2016, General Moly, Inc. filed new water applications with the Nevada State Engineer for the full quantity of water necessary to construct and operate the Mt. Hope Project. Action on those applications was pending, awaiting the decision that was presented by the Nevada Supreme Court earlier this week. The process should start to move ahead to schedule a hearing before the Nevada State Engineer for the company to present evidence of the company's ability to mitigate any potential impacts to senior water right holders in the basin and to ultimately grant the new applications.