Vancouver, British Columbia – (Newsfile Corp. – August 25, 2021) – American mining company CuMo (TSXV: MLY) (OTC Rose: MLYCF) (the “Company”) is pleased to announce that International CuMo Mining Corporation (“ICMC”), the Company’s subsidiary, has completed the initial tranche (the “initial tranche” of the sale of silver units. (the “Units”) in the amount of US $ 1,089.00 pursuant to the previously announced Silver Unit Funding (see the Company’s press release dated April 7, 2021) (the “Funding”). Of this Initial Tranche, 1,000 Units were subscribed by the Company, and the subscription price was credited back from the intercompany loan owed by the ICMC to the Company.
The Funding includes the sale of up to 12,500 Units by the ICMC at a price of US $ 1,000 per Unit, each Unit consisting of a guaranteed note in the principal amount of US $ 1,000 (a “Ticket”) and a right (the “Buying Money Right”) to enter into an agreement to buy and sell silver with CICM. The Notes are secured by certain assets of ICMC; bear interest at the rate of 7.5% per year payable semi-annually on June 30 and December 31, and have a term expiring on May 31, 2028. With the consent of the holder of the note, CICM could prepay all or part of the outstanding principal under this Note at any time, provided that any early redemption of all or part of the Note would result in the immediate expiration of the right to purchase money. Computershare has agreed to act as trustee of the Notes. Securities are tradable on the Vienna Stock Exchange and identified as CUMO S3 guaranteed purchase right obligation with ISIN AT0000A2R0R7.
The 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 calculation of resources, update the economic analysis, expand metallurgical tests, carry out infill drilling and carry out basic environmental studies, as well as reduce current trade debts as disclosed in the consolidated financial statements of the Issuer , and for general working capital purposes. The product can also be used to initiate data collection and exploration work that will be carried out on 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 early 2021.
Concurrent with the closing of the initial tranche, Acepac Holdings Inc. (“Acepac”) and the Company have agreed to settle their pending lawsuit. The Company must transfer to Acepac the 1,000 Units it has acquired from the ICMC and, in return, Acepac will waive any claim against the Company.
In addition, CICM has submitted requests for US government grants related to the development of critical minerals based in the United States. The grants currently requested involve partnerships with various academic institutions involving the use of rhenium in the capture and sequestration of carbon dioxide and the development of high temperature jet and rocket engines. The applications have been received and the CICM is awaiting its status. The approval process is expected to take several months.
The board of directors has decided to terminate the Calida option agreement signed in October 2016 and, in accordance with the agreement, all claims held at Calida are transferred to the original owners. Calida was a core project that did not match the Company’s objectives and its divestiture 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 engaged in dialogue with the various Austrian government agencies to begin the process of accessing historical mining records, in particular drilling results, mineral resources and reserves. historical, mining 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 the feasibility and development of its zinc-germanium-lead-cadmium-fluorite deposit in Austria. Management continues 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.icumoco.com and www.cumoproject.com.
For more information, please contact:
American mining company CuMo
Shaun Dykes, President and CEO
Phone. : (604) 689-7902
Neither the TSX Venture Exchange nor its Regulation Services 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.
Caution regarding forward-looking information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, including, but not limited to, statements which relate to the activities, events or developments that the Company anticipates. or anticipates that they will or may occur in the future, such as the Company’s closing of the remainder of the financing, use of the proceeds of the financing, further development and the ability to move its CuMo project to the feasibility and production; and the approval process and timeline for certain government grant applications. Forward-looking information is based on a number of important factors and assumptions, including the outcome of exploration activities, the Company’s ability to raise financing for a feasibility study and bring the CuMo project into production. , that no shortage of manpower or are experienced, this plant and this equipment operate as specified that the Court will not interfere with the exploration activities proposed by the Company to the CuMo project, and the capacity of the Company to obtain all the necessary permits and licenses to advance the CuMo project and possibly put it into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from any future prediction, projection or forecast expressed or implied by forward-looking information. . These factors include, among others, the interpretation and actual results of ongoing 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; labor disputes and other risks of the mining industry; delays in obtaining government approvals or funding, as well as factors disclosed in the Company’s public documents, including the Company’s MD&A for the period ended March 31, 2021. There may be other factors that cause actions, events or results not to be as expected, estimated or expected. 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. Therefore, readers should not place undue reliance on forward-looking information. Unless required by applicable securities legislation, the Company assumes no obligation to publicly update or revise forward-looking information.