Vancouver, British Columbia--(Newsfile Corp. - January 17, 2018) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo" or the "Company") announces that it has hired Sacre-Davey Engineering, a mining engineering company with considerable experience in Ore-Sorting, to provide an updated Preliminary Economic Analysis (PEA) for the Company's CuMo Project that would incorporate the substantial benefits of Ore-Sorting in the analysis. The PEA would be a prelude to a Pre-Feasibility Study and allow the Company to independently verify the benefits of Ore-Sorting to the CuMo Project in a relatively brief period.
At the Calida Gold project, assaying is still on-going, as assay results cannot be released until management ensures they are verifiable and represent the actual grades of the zones of interest. With new properties where previous samples are unavailable, it takes much longer to produce verifiable assay results, due to nugget and/or other irregular grade distributions. Vancouver Petrographic is currently studying the mineralogy of the samples at the microscopic level to assist with selecting the best assay techniques for the material intersected by the drill holes.
At the CuMo Project, the public comment period for the next version of the Supplemental Environmental Assessment was completed on January 8, 2018. The United States Forest Service is currently reviewing the comments and work has begun on producing the final documents and responding to the comments that were made. CuMoCo wishes to thank all the individuals who made numerous comments supporting the project.
Regarding the IEMR (HK) debentures, the Company is still negotiating with IEMR (HK) on various aspects of the final payments that are acceptable to both parties. Once an agreement has been reached an announcement will be made.
Finally, the Company announces that it has requested a 30-day extension from the TSX Venture Exchange ("TSXV") to close its private placement of convertible debentures (the "Debentures") previously announced on November 29, December 8 and December 21, 2017, and an increase in the size of the Debenture financing up to $5 million. The Company has to-date received subscriptions totalling $2.53 million. Certain terms of the Debentures were amended to comply with TSXV Policies. The Debentures have an initial one-year term automatically renewable annually for additional one-year terms, up to a maximum term of five years, are secured by the assets of the Company's subsidiary, Idaho CuMo Mining, and pay interest at a rate of 8.75% interest per annum, with interest paid in quarterly instalments. The Debentures are convertible into units of the Company (the "Units") at a conversion price of C$0.075 per Unit at any time following four months and one day from the closing date until the first anniversary on the closing date, and thereafter up to the maturity date (as such date may be extended) at C$0.10 per Unit. Each Unit will consist of one common share of the Company and one common share purchase warrant (a "Warrant"), with each Warrant entitling the holder to purchase an additional common share of the Company (a "Warrant Share") at a price of C$0.1125 per Warrant Share for a period of five years from the closing date. Any accrued but unpaid interest under the Debentures may also be converted, at the option of the holder, into Units at the Market Price determined at the time the interest becomes payable and is subject to TSXV approval. Should the holder decide not to renew the Debentures, the Company has ninety days to repay the principal owed. Proceeds from the Debenture financing, along with other financing efforts, will be used by the Company to repay the debentures owed to International Energy & Mineral Resources Investment (Hong Kong) Company Limited, to fund a Pre-Feasibility Study for the CuMo Project that will include the results from the Ore-Sorting process to be used by the Company and other optimizations to improve on the results in the November 15, 2015 Preliminary Economic Analysis (PEA), and to continue analyzing the results of the Calida Gold 2017 work program.
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. For more information, please visit cumoco.com, idahocumo.com and cumoproject.com.
