Vancouver, British Columbia--(Newsfile Corp. - October 30, 2017) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo or the "Company") announces that it is in the process of negotiating an amendment to the terms of repayment of the two debentures held by International Energy & Mineral Resources Investment (Hong Kong) Limited ("IEMR HK"). The first debenture, in the principal amount of Cdn$1.5 million (the "First Debenture"), was due to have been repaid on October 25, 2017, and the second debenture, in the principal amount of US$1.5 million (the "Second Debenture" and collectively with the First Debenture, the "Debentures"), is due on November 25, 2017.
The amended terms of repayment proposed by IEMR HK include the following: (a) the immediate payment of Cdn$597,500 (representing payment of Cdn$500,000 of principal owing under the First Debenture and Cdn$97,500 of accrued interest) (the "Initial Payment"); (b) payment of US$597,500 (representing payment of US$500,000 of principal owing under the Second Debenture and US$97,500 of accrued interest) by November 25, 2017; and (c) payment of the remaining Cdn$1 million of principal owing under the First Debenture plus additional interest payable, and of the remaining US$1 million of principal owing under the Second Debenture plus additional interest payable, on or before December 15, 2017. The Company has wired the Initial Payment of Cdn$597,500 to IEMR HK and intends to make the other required payments as additional financing efforts are completed. IEMR HK has also requested a damages compensation payment for the amendment of the terms of repayment of up to US$300,000. The Company is still in the process of negotiating with IEMR HK the final terms of this damages compensation payment (as well as concurrently in the process of raising additional funds) and expects to provide an update to shareholders shortly.
The Company also announces it is closing the first tranche of its previously announced non-brokered private placement (see October 11, 2017 news release) (the "Private Placement"). The first tranche consists of a total of 12,650,000 Units sold at a price of CAD$0.075 per Unit to raise gross proceeds of Cdn$948,750. 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 Cdn$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 Cdn$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 final approval of the TSX Venture Exchange ("TSXV"). 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 Company is using some of the proceeds from the Private Placement to make the Initial Payment and is continuing its efforts to raise additional funds pursuant to the Private Placement as several parties have advised the Company of their interest in participating. The Company is also exploring other financing arrangements.
An investigation by management into allegations appearing on certain websites and other social media outlets has revealed that the allegations involving the Company and its management are false and malicious lies deliberately trying to damage the Company, the Millennia deal, and the reputations of the Company's management. The Company, management and individuals are not party to nor have been party to any dealings mentioned on the fake sites and any documents pertaining to show this are false and forgeries.
In other news, the Company has completed a first-year drilling program at the Company's Calida Gold project, which program resulted in a total of 24 holes drilled, with 22 holes drilled in the main vein and two holes drilled in the Calida vein. Core is being processed and sent to ALS Chemex for assaying. The assaying process is taking longer than normal as samples are being assayed twice, initially for 45 elements on all samples and then selected samples are analyzed for gold. In addition, checking of all significant values is being done to ensure the accuracy of all assays. The Company intends to announce the assay results once such results are checked and confirmed.
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 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 cumoco.com, idahocumo.com and cumoproject.com.
