VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 30, 2013) - American CuMo Mining Corporation (CuMoCo) (the "Company") (TSX VENTURE:MLY)(OTCQX:MLYCF) is pleased to announce a financing to raise up to US$3 million by the sale of units ("Units") at a price of US$1,000 per Unit, with each Unit consisting of a US$1,000 non-transferable unsecured convertible debenture (a "Convertible Debenture") of the Corporation and 1,500 non-transferable common share purchase warrants (the "Warrants"). Each Convertible Debenture has a term of 5 years, bears an interest rate of 8.5% per annum, with interest payable on a semi-annual basis, and is convertible into common shares of the Corporation at a price of US$0.3333 per common share. Each Warrant will entitle the holder to purchase one additional common share of the Corporation (a "Warrant Share") for a period of five years at a price of US$0.40 per warrant Share. The company has the right to buy back the convertible portion at any time and the subscriber keeps the warrant. The offering is subject to the approval and consent of the TSX Venture Exchange (the "Exchange").
Finder's fees, in accordance with TSX policy, will be paid in connection with the financing. The funds raised in the financing will be used to advance the CuMo Project by producing an updated resource calculation, additional metallurgical studies, an improved economic analysis, and continue the environmental base line work and for general working capital purposes.
Through part of August and September, the U.S. Forest Service hosted informational open houses to present the proposed Supplemental Environmental Assessment (SEA) and to allow the public to comment on the report.
"We believe the Supplemental Environmental Assessment completes a comprehensive review of the company's activities and fulfills commitments to date," said Shaun Dykes, CEO of CuMoCo. "CuMoCo is grateful for the support of the local community and of the government officials who submitted comments supporting the advancement of the Project."
The U.S. Forest Service has completed the public comment period regarding the SEA and is reviewing the submitted comments. USFS will address any substantive issues raised before releasing the final report.
All ground disturbance work on the Project has been suspended since the August 2012 decision rendered by Federal District Court Judge Edward Lodge which directed USFS to perform additional environmental evaluation on groundwater issues within the area under review. CuMo Project leaders will continue to work with USFS to support the agency's completion of the SEA process. The Company believes the SEA should be approved and exploration activities resumed.
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. Management is continuing to build a strong foundation from which to move CuMoCo and the CuMo Project forward.
On behalf of the Board of Directors of American CuMo Mining Corporation
Shaun Dykes, Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.
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 CuMoCo expects or anticipates will or may occur in the future, such as the CuMoCo'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 CuMoCo 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 CuMoCo's proposed exploration activities at the CuMo project, and the ability of CuMoCo to obtain all requisite permits and licenses to bring the CuMo project 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 CuMoCo's publicly filed documents. 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, CuMoCo undertakes no obligation to publicly update or revise forward-looking information.