American CuMo Mining Corporation (“CuMoCo” or the “Company”) (TSXV: MLY; OTCQX: MLYCF) is pleased to announce that at the Company’s Annual General Meeting held May 30th all resolutions were passed and approved by shareholders. The following individuals were re-elected as Directors of CuMoCo: Shaun M. Dykes, Joseph Baird, Dr. John Moeller, Thomas Conway, and Trevor Burns.
The Board of Directors passed the following motions: (a) Shaun Dykes was re-appointed as President and Chief Executive Officer; (b) John Moeller was appointed as Chairman of the Board of Directors (c) Trevor Burns was appointed Chief Financial Officer of the Company. The Board also appointed Messrs. Conway, Moeller, and Baird to the Audit Committee.
Shaun Dykes, President and CEO, thanked shareholders for their support and continued patience during the past twelve months and provided a detailed update on the progress of the CuMo Project and the current state of negotiations with various parties interested in funding the Company. As a direct result of the announcement of the updated economic analysis and the significant reduction in the cost to produce a pound of molybdenum from US$5.87 to US$2.37 (news release dated April 10, 2018), interest in financing the project has increased substantially, with many unsolicited calls being received from interested parties. Over the past few months, substantial progress has been made in the completing the Supplemental Environmental Assessment. The Company is moving forward with the Pre-Feasibility Study and will include additional optimizations intended to reduce costs further and increase the profitability of the CuMo Project. Management continues to confirm that any proposed financing will be beneficial to shareholders of the Company and that attempts from various parties to obtain control of the CuMo asset for far less than its value will be rejected.
In other news, as a result of numerous positive discussions with various investors and groups in Munich, Zurich, and New York, CuMoCo has decided to offer, for a limited amount of time, three attractive investment opportunities: a private placement in the Company at $0.10 per Unit with a Unit consisting of one share and one two-year warrant exercisable at $0.15; a 5-year secured convertible debenture that pays 8% interest and is convertible into common shares at US$0.075 per share; and the previously announced silver debenture units whereby investors purchase a secured convertible silver stream debenture that pays 8.75% interest and have the right to purchase silver for US$5 per ounce from future production. The Company anticipates raising up to US$4 million from the private placement and convertible debentures and up to US$20 million through the sale of silver stream debentures. CuMoCo expects significant interest in these high-return, low-risk investment opportunities and is offering them on a first-come, first-serve basis.
Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President and CEO of the Company, is the designated qualified person for the CuMo Project and the Calida Gold project and has prepared the technical information contained in this news release.
About CuMoCo
CuMoCo is focused on advancing its CuMo Project towards feasibility. CuMoCo is also advancing its Calida Gold project. Please visit cumoco.com, idahocumo.com and 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
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 March 31, 2018. 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.