VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 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.
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. 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.
Forward-looking information
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.
