Scotia Capital Maintains 2-Sector Perform Rating For General Moly (GMO)

Scotia Capital analysts Lawrence Smith and Jackie Przybylowski maintained their "2-Sector Perform" rating and price target of $4.70 for shares of General Moly, Inc. (AMEX: GMO).

The analysts mentioned in their report that General Moly, Inc. had entered into a strategic relationship with Hanlong Mining that is expected to provide the full funding needed for the company's Mt. Hope project.

The announcement didn't alter the analysts' valuation for the company because they had already assumed a similar financing structure to the one announced.

The Scotia Capital analysts wrote that, "General Moly announced a significant investment and strategic relationship with Hanlong Mining Investment Inc. This transaction is intended to provide complete funding for the Mt. Hope project. Hanlong will invest $80 million in equity and on best efforts basis attempt to obtain $665 million in senior secured debt from a prime Chinese bank. Hanlong will provide a guarantee for the life of this loan."

Shares of General Moly were down 3% in morning trading.