Mosquito Consolidated Gold Mines Limited Announces Advance Of Funds And Dismissal Of Appeal

Vancouver, B.C., December 19, 2012. Mosquito Consolidated Gold Mines Limited (TSX-V:MSQ) (“Mosquito” or the “Company“) announces that further to the press release dated October 19, 2012, International Energy & Mineral Resources Investment (Hong Kong) Company Limited (“HK CO“) has advanced the principal amounts of Cdn$1,500,000 and US$1,500,000 to Company (the “Loan“). The Loan is secured by all present and after-acquired personal property of the Company. The Loan is being used to advance the CuMo project forward and for general working capital of the Company. The Loan shall accrue interest at a rate of 6.5% per annum and shall be repayable on or before 5 years from the date of advances (the “Maturity Date“). The Company proposes to issue two secured convertible notes (the “Notes“) representing such Loan to HK CO upon receipt of final acceptance by the TSX Venture Exchange. At the option of HK CO, the Notes shall be convertible at any time prior to the Maturity Date, in whole or in part, into common shares of the Company at a price of Cdn$0.28 per common share provided that HK CO shall only be permitted to exercise such conversion right to the extent that it results in HK CO holding no greater than 19.9% of the issued and outstanding common shares of Mosquito. The Note is subject to a four month hold period in accordance with applicable Canadian securities laws.

Mosquito is proposing to rename the Company “American CuMo Mining Corporation” to better represent the Company’s focus. Shareholders are encouraged to vote for the name change at the upcoming AGM on December 28, 2012. Once approved, the Company can then commence 2013 with a new name, corporate image, and management.

In other news, the re-installed team at the CuMo project has obtained a dismissal of an appeal filed by environmental groups of Judge Lodge’s August 29, 2012 decision (see September 05. 2012 news release about Judge Lodge’s decision). The appeal was filed in an attempt to overturn those portions of the decision in favour of the United States Forest Service (USFS). Judge Lodge had remanded certain groundwater issues back the USFS for further environmental review, but dismissed several other claims made by the environmental groups challenging the permit issued by USFS for CuMo’s exploratory drilling. CuMo’s legal team asked the appeals court to dismiss the groups’ appeal, and then was able to negotiate a dismissal without further litigation. This allows the USFS to proceed with the review of groundwater issues and issue a new determination as to environmental effects.

On behalf of the Board of Directors of

Shaun Dykes
Chief Executive Officer

For further information, contact:

For further information, contact:
Shaun Dykes, Chief Executive Officer
American CuMo Mining Corporation
Tel: (604) 689-7902

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.

Related Posts

News Archives


2023-02-03 12:46pm EST