American CuMo Mining signs Memorandum of Understanding to develop the CuMo molybdenum-copper-silver project

American CuMo Mining Corporation (CuMoCo or the Company) (TSXV: MLY; OTC-Pink: MLYCF) is pleased to announce that it and its subsidiary, Idaho CuMo Mining Corporation (Idaho CuMo), have signed a non-binding Memorandum of Understanding (MOU) with Ping Shan Resource Holdings Ltd. (PS Resources), a subsidiary of a leading Hong Kong based commodities group, and MCC8 Group Company Limited (MCC8, and collectively with PS Resources, the Chinese Partners), a China-based leader in Engineering, Procurement and Construction (EPC) and management for non-ferrous metallurgical industry projects, with respect to the development of CuMoCo’s CuMo Project, a molybdenum-copper-silver deposit located in Idaho, USA.

The parties entered the MOU to formalize their understanding and intentions with respect to the development of the CuMo Project. Specifically, the Chinese Partners are to arrange a minimum of US$700 million in project financing for the development and construction of the CuMo Project in order to receive an 80 percent of net proceeds interest in the joint venture to be formed between Idaho CuMo and the Chinese Partners in respect of the CuMo Project (Joint Venture). Subsequent funding of the Joint Venture is to be provided on a pro rata basis. At the appropriate time, Idaho CuMo intends to seek mining equipment equity loans to cover their 20 percent of the contributions to the Joint Venture.

Upon formation of the Joint Venture, the CuMo Project would continue to be owned by Idaho CuMo and managed through the Joint Venture by a committee (Management Committee) consisting of two committee members from Idaho CuMo and two from the Chinese Partners with appropriate provisions to resolve deadlocks. The parties contemplate that the Management Committee would be charged with the objective of reaching a production decision for the CuMo Project and commissioning an independent Definitive Feasibility Study, including all environmental studies, permits and bonding arrangements for the Project.

The parties are to negotiate a binding, definitive project financing agreement (Definitive Agreement). The terms of the Definitive Agreement would be subject to various regulatory, government, Board of Director and shareholder approvals. The terms of the MOU provide that once Idaho CuMo has obtained US$25 million in new capital (Initial Funding), the Chinese Partners would be granted exclusivity for one year to perform due diligence, obtain all required approvals and secure funding to complete the proposed transaction (Exclusivity Period).

Strategic Venture Fund of Hong Kong facilitated the MOU between CuMoCo and the Chinese Partners, subsequent to signing a US$ 50 million consulting agreement with the Company.

CuMoCo’s President and CEO Shaun Dykes stated: “We are extremely pleased to see that our CuMo Project has been met with genuine interest from one of Asia’s largest and most prestigious companies in the non-ferrous metallurgical industry, and a company that has a declared focus on modern environmental solutions. MCC8 not only has an impressive financial background, the company has also demonstrated its outstanding capability for sustainable green solutions in its many recent projects. CuMoCo looks forward to the CuMo Project being developed to the benefit of its many stakeholders, including Boise County and the State of Idaho.”

About Ping Shan Resources and China MCC8 Group

Ping Shan Resources is part of a leading Hong Kong based commodities industry group (the “Group”). The Group has been engaged in the production of cotton, tea and mining since the 1980’s in Southeast Asia and China. The Group is the 67% shareholder of a Hong Kong publicly-traded company. Within the mining segment, the Group owns major interests in a copper mine and one of the largest talc mines in China.

Located in Hong Kong and China, MCC8 Group Company Limited (MCC8) (formerly Jinchuan Metals Nonferrous Construction Company), is a leader in engineering, procurement, project financing construction and management organization for non-ferrous metallurgical industry projects in Asia and abroad and a key partner of the Jinchuan Group, which is one of the world’s top three nickel, cobalt and copper multinationals by market share. MCC8 has a 60-year history of construction and completion of more than 80 large non-ferrous metallurgical projects. MCC8 generated revenues of US$ 2 billion in 2015 and currently has more than 10,000 full-time employees. Furthermore, MCC8 and China MCC21 Group Ltd – a wholly-owned subsidiary of China Metallurgical Group Corporation – have formed a consortium to provide technical and operational support for international precious metals and other mining projects.

For more information, see http://www.chinamcc8.com

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 the Company expects or anticipates will or may occur in the future, such as the Company’s ability to successfully negotiate the Definitive Agreement with the Chinese Partners, the Company’s ability to move the CuMo Project through development to feasibility and production, and for the Company 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, 2016. 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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2022-10-05 12:05pm EDT