carlsg
8 years ago
RECENT NEWS
American CuMo Mining Subsidiary Enters into Limited Liability Company Agreement Providing up to US$200 Million in Financing for Joint Venture Company
V.MLY | November 21, 2016
Vancouver, British Columbia--(Newsfile Corp. - November 21, 2016) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) (CuMoCo or the Company) announces that its wholly-owned subsidiary, Idaho CuMo Mining Corporation ("Idaho CuMo") executed an arm's-length Limited Liability Company Agreement (the "LLC Agreement") with Platinum Resources International Limited, a corporation existing under the laws of the British Virgin Islands ("PRI") and having its head office located in Hong Kong, to form Poly Resources LLC ("Poly"), a Delaware-incorporated limited liability company, for the purpose of conducting mining related activities as a joint venture. Mr. Yangbo Cai, CEO of PRI, executed the LLC Agreement on behalf of PRI.
Idaho CuMo currently holds 18,060 shares of Poly, representing a 100% interest, after having contributed into Poly its interest in the option agreement dated October 31, 2016 pursuant to which Idaho CuMo has the option to purchase a 100% interest in the Calida Mine gold property in Idaho, and having also assigned to Poly the exclusive right to purchase up to 20% of Idaho CuMo's shares for an aggregate purchase price of US$100 million. Idaho CuMo will use the US$100 million proceeds from the sale of the shares to advance the CuMo Project to feasibility.
Subject to receipt of Hong Kong regulatory approval, PRI has the exclusive rights under the LLC Agreement to contribute or cause to contribute the sum of US$10 million within 90 days and to contribute or cause to contribute the sum of US$190 million over the period of 30 months. For each payment of US$10 million, PRI is to be issued 3,856 shares in Poly. Following the 20th payment of US$10 million within the 30-month period, PRI would have contributed US$200 million and received 77,120 shares of Poly. In consideration for arranging this transaction, Strategic Venture Fund Ltd. is to be assigned 4,820 shares of Poly upon Poly's receipt of the first US$10 million from PRI within 90 days. Once all shares have been issued as per the LLC Agreement, Poly would have a total of 100,000 shares outstanding, of which CuMo would own 18,060.
"I am extremely pleased to have executed this LLC Agreement on behalf of Idaho CuMo Mining at a signing ceremony with PRI in Shenzhen, China. We believe that it provides a tremendous opportunity to accelerate the development of both the CuMo and Calida projects," said Trevor Burns, Executive Chairman of Idaho CuMo Mining Corporation.
The payments to Poly to be made by PRI in the aggregate of US$200 million may be settled by a combination of cash, convertible bonds or shares issued by a recognized member of the Hong Kong Stock Exchange with payment in the form of convertible bonds or consideration shares and terms being subject to approval by all members of the management of Poly. If PRI fails to make any portion of its contribution, including the initial US$10 million within 90 days, and such failure is not cured before receiving written notice of such failure, then PRI would have deemed to have resigned as a member of Poly, provided that PRI may also voluntarily resign as a member of Poly at its sole discretion. In lieu of resignation, if Idaho CuMo provides written notice of consent, PRI's interest in Poly would be fixed at the number of Poly shares that it then held. If and when PRI has made the entire US$200 million contribution, the members would make capital contributions to adopted programs and budgets on a pro rata basis.
"This agreement is a major step forward for CuMoCo and its shareholders. We welcome our new partner and look forward to creating substantial jobs and value for the economy of Idaho as we move our projects forward," said Shaun Dykes, President and CEO of CuMoCo.
This transaction is subject to receipt of regulatory approval.
Shaun Dykes, M.Sc. (Eng); P.Geo (#20044), a Qualified Person as defined in NI 43-101, is responsible for the review of all scientific and technical information contained in this release.
About CuMoCo
CuMoCo is focused on advancing its CuMo Project towards feasibility. Management is continuing to build an even stronger foundation from which to move the Company and the CuMo Project forward. For more information, please visit www.cumoco.com and www.cumoproject.com
For further information, please contact:
American CuMo Mining Corporation
Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Email: info@cumoco.com
Read more at http://www.stockhouse.com/news/press-releases/2016/11/21/american-cumo-mining-subsidiary-enters-into-limited-liability-company-agreement#X73jLIr97Xe9grZZ.99
carlsg
8 years ago
RECENT NEWS
American CuMo Mining Subsidiary Enters into Limited Liability Company Agreement Providing up to US$200 Million in Financing for Joint Venture Company
V.MLY | November 21, 2016
Vancouver, British Columbia--(Newsfile Corp. - November 21, 2016) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) (CuMoCo or the Company) announces that its wholly-owned subsidiary, Idaho CuMo Mining Corporation ("Idaho CuMo") executed an arm's-length Limited Liability Company Agreement (the "LLC Agreement") with Platinum Resources International Limited, a corporation existing under the laws of the British Virgin Islands ("PRI") and having its head office located in Hong Kong, to form Poly Resources LLC ("Poly"), a Delaware-incorporated limited liability company, for the purpose of conducting mining related activities as a joint venture. Mr. Yangbo Cai, CEO of PRI, executed the LLC Agreement on behalf of PRI.
Idaho CuMo currently holds 18,060 shares of Poly, representing a 100% interest, after having contributed into Poly its interest in the option agreement dated October 31, 2016 pursuant to which Idaho CuMo has the option to purchase a 100% interest in the Calida Mine gold property in Idaho, and having also assigned to Poly the exclusive right to purchase up to 20% of Idaho CuMo's shares for an aggregate purchase price of US$100 million. Idaho CuMo will use the US$100 million proceeds from the sale of the shares to advance the CuMo Project to feasibility.
Subject to receipt of Hong Kong regulatory approval, PRI has the exclusive rights under the LLC Agreement to contribute or cause to contribute the sum of US$10 million within 90 days and to contribute or cause to contribute the sum of US$190 million over the period of 30 months. For each payment of US$10 million, PRI is to be issued 3,856 shares in Poly. Following the 20th payment of US$10 million within the 30-month period, PRI would have contributed US$200 million and received 77,120 shares of Poly. In consideration for arranging this transaction, Strategic Venture Fund Ltd. is to be assigned 4,820 shares of Poly upon Poly's receipt of the first US$10 million from PRI within 90 days. Once all shares have been issued as per the LLC Agreement, Poly would have a total of 100,000 shares outstanding, of which CuMo would own 18,060.
"I am extremely pleased to have executed this LLC Agreement on behalf of Idaho CuMo Mining at a signing ceremony with PRI in Shenzhen, China. We believe that it provides a tremendous opportunity to accelerate the development of both the CuMo and Calida projects," said Trevor Burns, Executive Chairman of Idaho CuMo Mining Corporation.
The payments to Poly to be made by PRI in the aggregate of US$200 million may be settled by a combination of cash, convertible bonds or shares issued by a recognized member of the Hong Kong Stock Exchange with payment in the form of convertible bonds or consideration shares and terms being subject to approval by all members of the management of Poly. If PRI fails to make any portion of its contribution, including the initial US$10 million within 90 days, and such failure is not cured before receiving written notice of such failure, then PRI would have deemed to have resigned as a member of Poly, provided that PRI may also voluntarily resign as a member of Poly at its sole discretion. In lieu of resignation, if Idaho CuMo provides written notice of consent, PRI's interest in Poly would be fixed at the number of Poly shares that it then held. If and when PRI has made the entire US$200 million contribution, the members would make capital contributions to adopted programs and budgets on a pro rata basis.
"This agreement is a major step forward for CuMoCo and its shareholders. We welcome our new partner and look forward to creating substantial jobs and value for the economy of Idaho as we move our projects forward," said Shaun Dykes, President and CEO of CuMoCo.
This transaction is subject to receipt of regulatory approval.
Shaun Dykes, M.Sc. (Eng); P.Geo (#20044), a Qualified Person as defined in NI 43-101, is responsible for the review of all scientific and technical information contained in this release.
About CuMoCo
CuMoCo is focused on advancing its CuMo Project towards feasibility. Management is continuing to build an even stronger foundation from which to move the Company and the CuMo Project forward. For more information, please visit www.cumoco.com and www.cumoproject.com
For further information, please contact:
American CuMo Mining Corporation
Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Email: info@cumoco.com
Read more at http://www.stockhouse.com/news/press-releases/2016/11/21/american-cumo-mining-subsidiary-enters-into-limited-liability-company-agreement#X73jLIr97Xe9grZZ.99
stocktrademan
9 years ago
$MLYCF recent news/filings
bullish
charts that are focused on long term growth and are not affected by earnings reports
## source: finance.yahoo.com
Wed, 08 Jul 2015 16:27:12 GMT ~ Updated Resource Estimate for CuMo Project delivers significant increases in Measured and Indicated with a New Measured Category
[at noodls] - Vancouver, B.C., July 8, 2015: American CuMo Mining Corporation ('CuMoCo' or the 'Company') (TSXV: MLY; OTC-Pink: MLYCF) is pleased to announce that Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo, President and ...
read full: http://www.noodls.com/view/EE10CA8E6F63683558C096747B74FB0E6BA8B6E8
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Wed, 08 Jul 2015 12:08:00 GMT ~ American CuMo Mining Corporation: Updated Resource Estimate for CuMo Project Delivers Significant Increases in Measured and Indicated with a New Measured Category
[Accesswire] - VANCOUVER, BC / ACCESSWIRE / July 8, 2015 / American CuMo Mining Corporation ( TSXV: MLY) (OTC Pink: MLYCF ) ("CuMoCo" or the "Company") is pleased to announce that Mr. Shaun M. Dykes, ...
read full: http://finance.yahoo.com/news/american-cumo-mining-corporation-updated-120800539.html
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Mon, 13 Apr 2015 21:00:33 GMT ~ U.S. Forest Service’s Supplemental Environmental Assessment Paves Way for Completion of CuMo Exploration Project in Idaho
[at noodls] - U.S. Forest Service's Supplemental Environmental Assessment Paves Way for Completion of CuMo Exploration Project in Idaho Vancouver, B.C., April 13, 2015: American CuMo Mining Corporation ("CuMoCo" ...
read full: http://www.noodls.com/view/043545E816D9F07D71B998F64A314DC7A315ED0F
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Mon, 13 Apr 2015 15:31:00 GMT ~ U.S. Forest Service's Supplemental Environmental Assessment Paves Way for Completion of CuMo Exploration Project in Idaho
[PR Newswire] - OTC-Pink: MLYCF) wishes to announce that the U.S. Forest Service (USFS) has released its Draft supplemental Decision Notice and Finding of No Significant Impact (FONSI) and Supplemental Environmental Assessment (SEA) regarding the CuMo Exploration Project. The report and decision re-confirms the Forest Service's 2011 Decision Notice and FONSI and will enable fulfillment of a federal judge's order to carry out necessary studies to complete the exploration phase of the CuMo Project's large strategic metals asset in Idaho. The new report demonstrates that by following proper procedures, the exploration program can avoid or mitigate groundwater quality impacts – a key consideration for the federal district court. The SEA resulted from an August 2012 decision rendered by Federal District Court Judge Edward Lodge, in response to litigation filed by environmental groups challenging the USFS's National Environmental Policy Act (NEPA), Environmental Assessment process, and it's FONSI relative to the CuMo Exploration Project.
read full: http://finance.yahoo.com/news/u-forest-services-supplemental-environmental-153100183.html
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Mon, 13 Apr 2015 15:31:00 GMT ~ U.S. Forest Service's Supplemental Environmental Assessment Paves Way for Completion of CuMo Exploration Project in Idaho
[CNW Group] - U.S. Forest Service's Supplemental Environmental Assessment Paves Way for Completion of CuMo Exploration Project in Idaho
read full: http://finance.yahoo.com/news/u-forest-services-supplemental-environmental-153100582.html
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$MLYCF charts
basic chart ## source: stockcharts.com
basic chart ## source: stockscores.com
big daily chart ## source: stockcharts.com
big weekly chart ## source: stockcharts.com
$MLYCF company information
## source: otcmarkets.com
Link: http://www.otcmarkets.com/stock/MLYCF/company-info
Ticker: $MLYCF
OTC Market Place: OTC Pink Current
CIK code: 0000817390
Company name: American Cumo Mining Corp.
Company website: http://www.cumoco.com
Incorporated In: British Columbia, Canada
Business Description: American CuMo Mining Corp. is a Canadian natural resource exploration and development company with a diverse portfolio of precious and base metals projects in North America. CuMoCo has discovered one of the largest deposits of molybdenum, copper and silver in North America near Boise, Idaho, USA. The Company is advancing its CuMo Project towards feasibility and its goal is to establish itself as one of the world?s largest and lowest-cost primary producers of molybdenum.
$MLYCF share structure
## source: otcmarkets.com
Market Value: $7,403,620 a/o Jul 24, 2015
Shares Outstanding: 82,262,446 a/o May 23, 2014
Float: Not Available
Authorized Shares: Unlimited a/o Jun 30, 2011
Par Value: No Par Value
$MLYCF extra dd links
Company name: American Cumo Mining Corp.
Company website: http://www.cumoco.com
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=MLYCF+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=MLYCF+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=MLYCF+Industry
## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/MLYCF/news - http://finance.yahoo.com/q/h?s=MLYCF+Headlines
## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/MLYCF/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/MLYCF/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=MLYCF+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/MLYCF
DTCC (dtcc.com): http://search2.dtcc.com/?q=American+Cumo+Mining+Corp.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=American+Cumo+Mining+Corp.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=American+Cumo+Mining+Corp.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.cumoco.com
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.cumoco.com#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.cumoco.com
## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/MLYCF
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000817390&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/MLYCF/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/MLYCF/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=MLYCF&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=MLYCF
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/MLYCF/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=MLYCF+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=MLYCF+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=MLYCF
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=MLYCF
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=MLYCF+Cash+Flow&annual
## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/MLYCF/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=MLYCF+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/MLYCF.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=MLYCF
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/MLYCF/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/MLYCF/insider-transactions
## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/MLYCF
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/MLYCF
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/MLYCF:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=MLYCF
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=MLYCF
$MLYCF DD Notes ~ http://www.ddnotesmaker.com/MLYCF
LV RDPD
13 years ago
Global molybdenum demand hits new high in 2010: IMOA
Updated: 2011-06-14 09:35
Counter:95
Global demand for molybdenum hit a new high in 2010 at 474 million lbs contained molybdenum, the International Molybdenum Association said on Monday.
IMOA said that the figure surpassed the previous high of 470 million lbs in 2007.
In 2010, the greatest growth in molybdenum usage came from China where consumption was up from 119 million lbs in 2009 to 148.5 million lbs in 2010.
European demand was 113.9 million lbs in 2010 up from 107.3 million lbs in 2009. Usage in the US and Japan accounted for 67.9 million and 60.9 million lbs respectively in 2010.
Focusing on the fourth quarter of 2010, China consumed 36.2 million lbs of molybdenum compared with European demand of 31.1 million lbs. The US and Japan used 15.9 million and 15.8 million lbs respectively.
According to the association, North America was the largest producing region in 2010 with 173.2 million lbs but China remained the largest producing country with 159.9 million lbs.
Over the fourth quarter of the year, North America's molybdenum output rose to 47.8 million lbs up from 42.8 million lbs the previous quarter, while China's production hit 35.3 million lbs.
South America was the third largest molybdenum producer accounting for 115.8 million lbs, with other molybdenum producing regions contributing 48 million lbs.
http://www.chinamining.org/News/2011-06-14/1308015413d46606.html
And let’s not forget oil pipelines. Every mile of oil pipeline requires 3,200 pounds of molybdenum. Just think of all the shale drilling projects going on around the world. They all need pipeline expansions to get this production to market.
So, if you invest now in molybdenum, expect the near term to be soft. But things will heat up and we could see supply and demand tighten as steel use gains momentum and the oil and gas industry expands.
http://www.investmentu.com/2011/May/molybdenum-investing.html
watching for a year. Ready to enter soon.
DrBill1
13 years ago
Compelling risk/reward dynamic
The world needs 300 million pounds of molybdenum in 9 years
Mosquito Consolidated Gold Mines Limited (MQCMF) on the US OTCQX - (TSX Venture: MSQ)
According to a London Times article and reported by Dow Jones, Mosquito's CuMo deposit is the largest untapped open pit molybdenum deposit in the world.
But there’s more to getting a mine off the ground than the size and richness of the resource.
The formula for success in the mining business is: you have to have the project, you have to have the people, you have to have the technical expertise to advance the project, and you have to have the money. Three out of four don't count!
And the “getting the money” part is an ongoing task until the project is production ready. Mosquito certainly has the first three of these requirements for success, and management has clearly demonstrated its financial ability to perform by a) monetizing its noncore assets (other than CuMo) and b) having been vigilant in its money raises by carefully shepherding the number of total shares, i.e. dilution.
But what lies ahead is the ongoing quest for the eventual $billion plus…
Here’s the essence: Mosquito’s CuMo contains one of the world’s largest, strategic, stores of mineral wealth—with perhaps as much as $100 billion in the ground using the 2009 Ausenco and the 2010 Snowden numbers from their NI 43-101 Resource Estimate mine calculations.
Molybdenum mines take a long time to get up and running, and considering that the world will need the equivalent of one to two world class molybdenum mines coming into production during each year for the next 8-9 years, the demand outlook for the “moly” miners, specifically Mosquito’s CuMo, looks excellent. And importantly in the equation: molybdenum is not recyclable.
Ratcheting up the case for molybdenum demand a notch, consider that the government of China has set yearly quotas for “in country” production due to ebbing domestic supply and the increased costs of mining lower grade ores. Last October, China, 1) classified molybdenum as a strategic material and 2) indicated that the country would restrict the mining and export of the metal starting in 2011. They also mentioned that they were considering “stockpiling” the metal.
Crucially, this means that the projected dramatic increase in molybdenum demand predicted by 2020 will need to be met by western producers of the metal. You may already know that China has been on a global natural resource buying spree to fulfill its domestic consumption, and that includes molybdenum producers.
So where is Mosquito’s CuMo in the timeline of actual production?
Recently, (on 5/17/2011) Mosquito won a key environmental ruling: the U.S. Forest Service gave authorization for Mosquito to embark on its expanded exploratory drilling program, planned for this summer. No further environmental hurdles look to be in the way until the final pre-feasibility mine plan, and that’s out in time a couple of years.
Also key in evaluating Mosquito’s CuMo is that the resource is in the very friendly mining state of Idaho, where mining is bread and butter. Mining infrastructure, power, water, major road and rail networks—and a trained mining-industrial workforce—are very easily accessible within 50 miles of the property. Because of these facts and the open-pit characteristics of CuMo, management believes they will be the low-cost producer of molybdenum oxide. (See Corporate Presentation) http://www.mosquitogold.com/i/pdf/Presentation.pdf
Some necessary background info: The Thompson Creek Mine, also in Idaho, is the fourth-largest primary molybdenum mine in the world and the largest mine in the state, and it is located just 60 miles from Mosquito’s CuMo. Conspicuously the Thompson Creek Mine is nearly played out after 30 years of production, and will likely be shut down in 10 years. Because of the issue of Thompson Creek’s “playing out” it is mining as low as 0.01% Mo. Given this fact, the focus of mining there is now on the residual resource that was put aside over the years. Thompson Creek accounts for about 5% of world moly production.
Another important fact to hold in mind: Mosquito’s CuMo has the same grade ore as the Thompson Creek Mine, but is three times the size.
In these days of deep uncertainty, economic stagnation and high unemployment, the development of this major resource will inject a continuum of huge funding to a mining-friendly region in Idaho where unemployment is high and the region’s largest mine, the Thompson Creek Mine, is seeing its last days. Most notably, the massive infusion of money into that poor county in Idaho will occur long before Mosquito will see any output from the mine, as these enormous projects take several years to begin production. The positive economic impact to the region will be immediate, profound, and lasting; indeed, billions of dollars will be spent there. From what I hear, miners from the region and its adjoining states are said to be making plans for a new “forever” job at Mosquito’s CuMo.
Now what’s next for Mosquito’s CuMo—and for that matter, junior miners in general? It’s called getting the money to get into production, and hence the compelling risk/reward dynamic that I referred to.
Getting a mine up and running is all about the quest for money and more money and then more money. The good news is that when you really have it in the ground and it’s big and rich, and if the demand is there and it’s easy to access, then the financing isn’t quite such a slog. But it’s still definitely a process. All the way along as one gets closer to production, the shares of the company generally trend higher. As part of the “building brand” process, add in investment banking relationships, research reports, road shows bringing professional miners and fund managers to the asset, public and investor relations, etc.—and there are always the interested larger companies that may want to partner-up or buy you out. By the time a discovered asset becomes a big mine in production it can easily take more than a billion dollars. As I mentioned above, Mosquito has been watchful in its money raises by carefully shepherding the number of total shares, i.e. dilution.
Global use of molybdenum is increasing and new uses continue to be developed. In 9 years we will need an additional 200 or 300 million lbs—that would equate to 10 Thompson Creek mines. Considering CuMo’s mammoth size, huge intrinsic value, the initial “go ahead” from the US Forest Service over environmental concerns, the low cost to mine per ton, its open pit characteristics that will allow enormous daily production, and its location in mining friendly Idaho, good old USA, the current low price of Mosquito shares and staggering low market-cap of only US$62 million gives investors a compelling opportunity to participate in what is rapidly becoming one of the best—and what could be the most profitable—mineral deposit in the world, of any kind.
Rarely have I ever seen a more optimal or compelling risk/reward dynamic than that presented by the shares of Mosquito Consolidated Gold Mines Limited. I believe that it’s only a matter of a “short time” before the tremendous intrinsic value of the CuMo project is reflected in the market.
__________________________________________________________________
Disclaimer: I have bought shares of Mosquito in the open market.
Dr. John Faessel
ON THE MARKET
Commentary and Insights
Faessel Publishing LLC
__________________________________________________________________
Posted yesterday on the MSQ Stockhouse Board
DrBill
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Renee
3 years ago
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