Vancouver, British Columbia--(Newsfile Corp. - October 11, 2017) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo or the "Company") as a part of its new financing strategy, has repriced its previously announced non-brokered private placement of units (the "Units") to raise gross proceeds of up to CAD$3,750,000 (the "Previous Private Placement"). A total of up to 15,000,000 Units will now be offered for sale at a price of CAD$0.075 per Unit to raise gross proceeds of up to CAD$1,125,000 (the "Private Placement").
Each Unit consists of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant") exercisable to purchase an additional common share of the Company (a "Warrant Share") at a price of CAD$0.125 per Warrant Share for a period of two years from the date of issue, subject to an acceleration provision whereby the term of the Warrants may be accelerated if the Company's common shares trade at or above a price of CAD$0.175 per share for a period of 10 consecutive trading days. In such case, the Company may give notice to the holders of Warrants that the Warrants will expire 20 days from the date of providing such notice and the Warrants. The Private Placement is subject to TSX Venture Exchange ("TSXV") approval. In connection with the Private Placement and in accordance with TSXV policy, the Company may pay to certain eligible finders a finder's fee for Units sold in the Private Placement.
The securities offered pursuant to the Private Placement have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any United States state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any applicable exemption from the registration requirements 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 securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
As previously announced, the proceeds of the Private Placement are to be used in helping repay the principal outstanding under two secured convertible debentures (the "Convertible Debentures") held by International Energy & Mineral Resources Investment (Hong Kong) Limited ("IEMR HK") and to provide funding for the on-going work at the CuMo and Calida projects in Idaho, until such time as negotiations in respect of the strategic financial partnership with Millennia Minerals Pte. Ltd. have been completed and definitive agreements executed. One of the Convertible Debentures in the principal amount of CAD$1,500,000 is due to be repaid on October 25, 2017. The second Convertible Debenture in the principal amount of US$1,500,000 is due to be repaid on November 25, 2017. Under the terms of the Convertible Debentures, the Company has the right to prepay the principal amount owing thereunder at any time without penalty.
About CuMoCo
CuMoCo is focused on advancing its CuMo Project towards feasibility. CuMoCo is also advancing 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.
