Vancouver, British Columbia–(Newsfile Corp. – December 8, 2020) – American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) (“CuMoCo” or the “Company”) and Idaho CuMo Mining Corporation (“ICMC”) are pleased to announce a $1 million 8.75% secured convertible debenture financing (the “Debentures”). The financing is subject to TSX Venture Exchange approval.
The Debentures have a five-year term, are secured by the assets of the Company’s subsidiary, ICMC, and pay interest at a rate of 8.75% per annum, with interest paid in semi-annual instalments. At the investor’s discretion, the interest can be accrued and compounded. The Debentures are convertible into Units of the Company (the “Units”) at an initial conversion price of C$0.05 per Unit at any time following four months and one day from the closing date until the first anniversary on the closing date, and thereafter up to the maturity date (as such date may be extended) at a price of C$0.075 per Unit. Each Unit will consist of one common share of the Company and one common share purchase warrant (a “Warrant”), with each Warrant entitling the holder to purchase an additional common share of the Company (a “Warrant Share”) at a price of C$0.075 per Warrant Share for a period of five years from the closing date. Any accrued but unpaid interest under the Debentures may also be converted, at the option of the holder, into Units at the Market Price determined at the time the interest becomes payable.
The securities of the Company have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement 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, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The Debentures financing will be used to continue development of the CuMo deposit, including smaller-scale ore sorting analysis, with the goal of reducing the mill size and thus capital cost while producing the same amount of metal as outlined in the recently filed Prelimanary Economic Analysis, starting updated metallugical testing with the goal of adding Tungsten back to the resource base, and determining the final mill recovery circuits; beginning the data gathering process for the recently acquired Bleiberg Project; and for working capital.
In addition, ICMC is investigating the possibility of listing US$10 to US$15 million in secured convertible silver stream debenture notes (the “Notes”) that would trade on the Vienna Stock Exchange, a long-standing established exchange. The Notes would bear interest at a rate of 7.5% per annum, payable/accruable semi-annually , and would have a minimum term of 5 years. The Notes would be convertible into the right to purchase silver from the production at the CuMo Project for US$5 per ounce. The funds would be used for drilling and feasibility work and to develop final mineral resources at the CuMo Project and to produce a feasibility study for the Bleiberg Project. More details will be made available once final terms have been determined and a listing application made.
Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President and CEO of the Company, is the designated qualified person for the CuMo and Bleiberg Projects and has prepared the technical information contained in this news release.
About CuMoCo
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: [email protected]
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 September 30, 2020. 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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