VANCOUVER, Oct. 9, 2014 /PRNewswire/ - American CuMo Mining
Corporation ("CuMoCo" or the "Company") (TSXV: MLY; OTCQX:
MLYCF) is pleased to announce that its non-brokered private
placement of up to 10,000,000 units ("CuMoCo Units") at a
price of Cdn$0.05 per unit for gross
proceeds of up to $500,000 (the
"CuMoCo Offering"), announced on August 20,
2014, has been closed and oversubscribed. The Board of
Directors approved an increase to the size of the CuMoCo Offering,
and the Company has sold a total of 11,000,000 CuMoCo Units for
total gross proceeds of $550,000. A
portion of the proceeds of the CuMoCo Offering will be applied to
reduce the Company's working capital deficit and the remainder for
general corporate purposes.
Each CuMoCo Unit consists of one common share of the Company and
one share purchase warrant (a "Warrant") exercisable to purchase
one common share of the Company at a price of Cdn $0.10 per common share until October 9 2016, subject to an acceleration
provision whereby the term of the Warrants may be accelerated in
the event that the Company's common shares trade at or above a
price of Cdn $0.12 per share for a
period of 10 consecutive trading days. In such case, the Company
may, at its option, accelerate the expiry date by delivery of
notice to the holder and issuing a press release announcing such
acceleration, and, in such case, the expiry date of the Warrants
shall be deemed to be the 20th day following the later of the date
on which the acceleration notice is sent to the holder of the
Warrants and the date of issuance of the press release. All
securities issued pursuant to the CuMoCo Offering will be subject
to a four month hold period, expiring on February 10, 2015.
Insiders and their associated parties, each being a "related
party" of the Company (as such term is defined under Multilateral
Instrument 61-101 - Protection of Minority Security Holders in
Special Transactions ("MI 61-101")), have subscribed for a
total of 4,170,000 CuMoCo Units, as follows: Shaun Dykes (President, CEO and a director of
the Company) and his associated parties, for 2,200,000 CuMoCo
Units; John Moeller (a director of
the Company) and an associated party, for 1,620,000 CuMoCo Units;
Trevor Burns (Vice-President,
Corporate Communications, Interim CFO and a director of the
Company) for 100,000 CuMoCo Units; and Joseph Baird (a director of the Company) for
250,000 CuMoCo Units. The Company has relied upon the exemptions
from the formal valuation and minority shareholder approval
requirements of MI 61-101 contained in Sections 5.5(a) and
5.7(1)(a) of MI 61-101 based on the fact that the fair market value
of the related party participation in the CuMoCo Offering will not
exceed 25% of the Company's market capitalization prior to the
closing of the CuMoCo Offering. The Board of Directors approved the
participation of insiders in the CuMoCo Offering with the
individual insiders who are directors abstaining from voting on
their participation.
The Company also announces that it has granted options to
purchase up to 300,000 common shares of the Company to each of
Thomas Conway and Trevor Burns, the two most recently appointed
directors, at a price of $0.35 per
share exercisable for a period of five years.
In other financing news, the Company is in advanced negotiations
regarding the silver streaming financing announced August 20, 2014 and in discussions with parties
interested in providing the funds necessary to complete a Bankable
Feasibility Study for the CuMo Project. Further news will be
announced if and when agreements are entered into.
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 the Company and the
CuMo Project forward. For more information, please visit
www.cumoco.com and www.cumoproject.com
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 the Company expects or anticipates will
or may occur in the future, such the Company'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 the Company 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 the Company's proposed exploration activities at the CuMo
Project, and the ability of the Company to obtain all requisite
permits and licenses to advance the CuMo Project and eventually
bring it 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 the
Company's publicly filed documents, including the Company's
Management's Discussion and Analysis for the period ended
March 31, 2014. 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, the Company
undertakes no obligation to publicly update or revise
forward-looking information.
SOURCE American Cumo Mining Corporation