American CuMo Mining Announces Silver Stream Funding and Details of Annual General Meeting
VANCOUVER, BC / ACCESSWIRE / February 10, 2016 / American CuMo Mining Corp. (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo" or the "Company") is pleased to announce that Idaho CuMo Mining Corporation ("Idaho CuMo", a wholly-owned subsidiary of CuMoCo), has finalized an agreement with a private California-based investor for the purchase of up to twelve US$250,000 units ("Units") of the Company's Silver Stream Debentures (see August 20, 2014 Press Release).
Under the terms of the agreement, the investor has purchased two Units for a total of US$500,000 and has been granted an option to purchase an additional two Units before December 31, 2016 and another two Units before December 31, 2017, provided the first two Units are purchased by December 31, 2016. The total investment is US$1,500,000 for six Units. The investor has agreed to accrue all interest payments and in so doing has been granted the right to purchase six more Units for an additional US$1,500,000 at the time the Company delivers a decision to place the CuMo Project into commercial production.
CuMoCo's Silver Stream financing is designed to raise up to US$25 million from the sale of Units at a price of US$250,000 per Unit, with each Unit consisting of a US$250,000 non-transferable loan ("loan") and the right to convert the loan into a contract to purchase 375,000 ounces of silver at US$5 per ounce (with a 1% per annum inflation clause) from 50% of the silver production of the CuMo Project. The purchaser has the right to convert the loan to a contract within 30 days of the Company delivering a decision to place the CuMo Project into commercial production. The loan is secured by the assets of Idaho CuMo.
The Company also announces that its Annual General Meeting has been set for 10:00 am PST, Tuesday March 29, 2016 at Bentall 5 Conference Room, Lobby Level, 500 Burrard Street, Vancouver. Proxy and circular Information will be delivered on February 18, 2016 to all shareholders of record as of February 12, 2016.
Finally, CuMoCo is pleased to report that 400 individual calibration sorting samples from its CuMo Project, representative of the deposit's various mineral zones, were delivered to and received by STEINERT Elektromagnetbau GmbH (www.steinertglobal.com). The samples are currently in the process of being scanned with STEINERT's sophisticated Ore-Sorting X-ray technology. This will be followed by the scanning of a large bulk sample for a final confirmation of the significant upgrading of the CuMo deposit's mineralization, as previously announced on January 11, 2016.
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 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 September 30, 2015. 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.
SOURCE: American CuMo Mining Corp.