American CuMo Mining announces Closing of First Tranche of Silver Purchase Financing

Vancouver, B.C., August 25, 2021: American CuMo Mining Corporation (the “Company”) (TSXV: MLY; OTC Pink: MLYCF) is pleased to announce that International CuMo Mining Corporation (“ICMC”), the Company’s subsidiary, has closed the initial tranche (the “Initial Tranche”) of the sale of silver units (the “Units”) in the amount of US $1,089,000 pursuant to the previously announced silver unit financing (see the Company’s news release dated April 7, 2021) (the “Financing”). Of this Initial Tranche,1,000 Units were subscribed for by the Company, and the subscription price was credited again the intercompany loan owed by ICMC to the Company.

The Financing involves the sale of up to 12,500 Units by ICMC at a price of US $1,000 per Unit, with each Unit consisting of a secured note in the principal amount of US $1,000 (a “Note”) and a right (the “Silver Purchase Right”) to enter into a silver purchase and sale agreement with ICMC. The Notes are secured against certain assets of ICMC; bear interest at a rate of 7.5% per annum payable semi-annually on June 30 and December 31; and have a term expiring May 31, 2028. With the consent of the holder of the Note, ICMC could prepay all or any portion of the principal amount outstanding under such Note at any time, provided that any prepayment in whole or in part of the Note would cause the Silver Purchase Right to immediately expire. Computershare has agreed to act as trustee for the Notes. The Notes are tradable on the Vienna Stock Exchange and identified as Collateralized Silver Purchase Right Bond CUMO S3 with ISIN AT0000A2R0R7.

Proceeds from the sale of the Units will be used to further develop the Company’s flagship asset, the CuMo Project, a large molybdenum, copper, and silver property located in Idaho, including: updating the resource calculation, updating the economic analysis, expanding metallurgical testing, conducting in-fill drilling and conducting environmental base-line studies, as well as to reduce current trade payables as disclosed in the Issuer’s consolidated financial statements, and for general working capital purposes. Proceeds may also be used to initiate the data gathering and exploration work to be conducted at the Bleiberg project in Austria.

The Company continues to be encouraged by the recent rise in metal prices since the start of 2021;
molybdenum is up 48 %, copper is up 31 % and silver is up 6 % since the start of 2021.

Concurrently with closing of the Initial Tranche, Acepac Holdings Inc. (“Acepac”) and the Company have agreed to settle their ongoing lawsuit. The Company is to assign to Acepac the 1,000 Units it acquired from ICMC and, in return, Acepac will renounce all claims against the Company.

In other news , ICMC has submitted applications for US government grants tied to the development of US based critical minerals. The current grants applied for involve partnerships with various academic institutions involving the use of Rhenium in the capturing and sequestering of carbon dioxide and the development of high temperature jet and rocket engines. The applications have been received and ICMC is awaiting to find out notification of their status. The approval process is expected to take several months.

The Board of Directors have decided to terminate the Calida Option Agreement signed in October 2016 and, as per the agreement, all claims owned at Calida are assigned to the original owners. Calida was a grassroots project that did not fit with the Company’s objectives and its disposal will allow the Company to focus on its two main projects, CuMo and Bleiberg.

At Bleiberg , now that the Covid-19 restrictions are slowly being reduced, the Company has initiated dialog with the various Austrian government agencies to begin the process of gaining access to the historic mine records in particular drill results, historic mining resources and reserves, mine production, targets and ore body development in the 20 kilometer long mining complex.

 

About American CuMo Mining

CuMoCo is focused on advancing its CuMo Project towards feasibility.  Management is continuing to build an even stronger foundation from which to move the Company and its projects forward. For more information, please visit www.cumoco.com, www.idahocumo.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.

 Cautionary statement regarding 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 the Company expects or anticipates will or may occur in the future, such the Company’s ability to move its CuMo Project to 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 result of exploration activities, the ability of the Company to raise the financing for 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 the Court will not intervene with the Company’s proposed exploration activities at the CuMo Project, and the ability of the Company to obtain all requisite permits and licenses to advance the CuMo Project and eventually bring it 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 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 the Company’s publicly filed documents, including the Company’s Management’s Discussion and Analysis for the period ended March 31, 2019.  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, the Company undertakes no obligation to publicly update or revise forward-looking information.

 

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2022-01-13 10:56am EST