American CuMo Mining Corporation (“CuMoCo” or the “Company”) (TSXV: MLY; OTCQX: MLYCF) is pleased to announce that it is arranging a non-brokered private placement of up to 10,000,000 units (the “Units”) at a price of Cdn$0.10 per Unit to raise gross proceeds of up to Cdn$1,000,000 (the “Private Placement”). Each Unit consists of one common share of the Company and one share purchase warrant (a “Warrant”) exercisable to purchase one common share of the Company at a price of Cdn$0.15 per common share for a period of five years from the date of issue, subject to an acceleration provision whereby the term of the Warrants may be accelerated in the event that the Company’s common shares trade at or above a price of Cdn$0.20 per share for a period of 10 consecutive trading days. In such case, the Company may give notice to the holders of Warrants that the Warrants will expire 20 days from the date of providing such notice. The Private Placement is subject to TSX Venture Exchange (“TSXV”) approval.
The Company also announces its initiative to raise additional funds for the development of its CuMo Project in Idaho, USA, through the sale of up to a 2% Net Smelter Returns Royalty interest in the project (the “NSR Royalty”). Funds raised from the sale of the NSR Royalty and from the Private Placement are to be used to continue the advancement of the CuMo Project, including drilling to produce the necessary engineering data for the final mineral resource estimate and economic optimizations, environmental base-line studies, and completing an updated economic feasibility analysis that incorporates advanced ore-sorting studies, final metallurgical testing and processing flow-sheet design, and operation analysis and conception.
CuMoCo intends to pay a finder’s fee of 5% in connection with the sale of the NSR Royalty and a 10% finder’s fee in respect of the Private Placement, subject to receipt of TSXV approval.
The securities offered pursuant to the Private Placement have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any United States state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About CuMoCo
CuMoCo is focused on advancing its CuMo Project towards feasibility and establishing itself as one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Management is continuing to build an even stronger foundation from which to move the Company and the CuMo Project forward. For more information, please visit www.cumoco.com and www.cumoproject.com
For further information, please contact:
American CuMo Mining Corporation
Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Email: info@cumoco.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.
Forward-looking information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that CuMoCo expects or anticipates will or may occur in the future, such as the CuMoCo’s ability to raise sufficient funds to advance its CuMo project towards feasibility and production, and to become one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Forward-looking information is based on a number of material factors and assumptions, including: the results of exploration and development activities; the ability of CuMoCo to raise sufficient funds to complete in-fill drilling, environmental baseline studies, an updated preliminary economic analysis and a feasibility study and to put the CuMo project into production; that no labour shortages or delays are experienced; that plant and equipment function as specified; that a court will not intervene with CuMoCo’s proposed exploration and development activities at the CuMo project; and the ability of CuMoCo to obtain all requisite permits and licenses to bring the CuMo project into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future prediction, projection or forecast expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration and development activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver and copper; possible variations in grade or recovery rates; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing, as well as those factors disclosed in CuMoCo’s publicly filed documents. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required under applicable securities legislation, CuMoCo undertakes no obligation to publicly update or revise forward-looking information.