Vancouver, British Columbia--(Newsfile Corp. - February 24, 2017) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo" or the "Company") announces that Platinum Resources International Limited ("PRI") did not contribute the sum of US$10,000,000 as required within 90 days of the effective date of the Limited Liability Agreement of Poly Resources LLC ("Poly") with the Company's wholly-owned subsidiary, Idaho CuMo Mining Corporation ("Idaho CuMo").
As such, Idaho CuMo has provided written notice to PRI of such failure to contribute the US$10,000,000, and as a result, PRI is deemed to have resigned as a member of Poly and has lost its right to earn an interest in Poly, which holds an option to purchase the Calida Mine gold property in Idaho and the right to purchase up to 20% of Idaho CuMo's shares (please refer to the Company's news release of November 21, 2016). Idaho CuMo remains the sole member of Poly.
PRI had requested an extension of the due date for the payment of the US$10,000,000 and had also proposed alternative financing terms, but CuMoCo's management and Board of Directors decided not to proceed further with the intended financing transaction with PRI. Instead, the Company has engaged in discussions and negotiations with another third party with a view to entering a strategic financial relationship with such third party. The Company expects to announce such alternative financing transaction shortly.
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. CuMoCo also intends to advance its newly-acquired Calida Gold Project. 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.
