VANCOUVER, B.C., November 2, 2017: American CuMo Mining Corporation (“CuMoCo” or the “Company”) (TSXV: MLY; OTCQX: MLYCF) announces that it will conduct a rights offering to raise gross proceeds of up to $5 million (the “Rights Offering”).
The Company will issue rights (the “Rights”) to existing shareholders in Canada and to eligible shareholders in the United States and in certain other jurisdictions at the close of business on the record date of November 10, 2017.
Eligible shareholders will receive one (1) Right for each common share held. Two (2) Rights will entitle the holder to subscribe for one (1) common share of the Company upon payment of the subscription price of C$0.07 per share (the “Subscription Price”). For example, a holder of 1,000 common shares will be entitled to subscribe for 500 common shares for an aggregate subscription price of C$35.00.
Shareholders who fully exercise their Rights will also be entitled to subscribe for additional shares in the Rights Offering, if available as a result of unexercised Rights prior to the Expiry Time, subject to certain limitations set out in CuMoCo’s rights offering circular.
The Rights will trade on the TSX Venture Exchange under the symbol MLY.RT commencing on November 9, 2017 and until 9:00 a.m. (Vancouver time) on December 11, 2017. The Rights will expire at 2:00 p.m. (Vancouver time) on December 11, 2017 (the “Expiry Time”), after which time unexercised Rights will be void and of no value. No fractional shares will be issued.
A rights offering notice and rights certificate will be mailed to each registered shareholder of CuMoCo resident in Canada and to each eligible shareholders in the United States as at the record date. Registered shareholders who wish to exercise their Rights must forward the completed rights certificate, together with the applicable funds, to the rights agent, Computershare Trust Company of Canada, on or before the Expiry Time. Shareholders who own their shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary. Further details of the Rights Offering are contained in the Company’s rights offering circular, which has been filed on SEDAR under CuMoCo’s profile at www.sedar.com.
There are currently 143,214,988 common shares of the Company outstanding. If all of the Rights issued under the Rights Offering are validly exercised, an additional 71,607,494 common shares would be issued. The Company will apply the amounts raised from the Rights Offering and from other sources of funding it is currently pursuing towards the repayment of the secured convertible notes (the “IEMR Notes”) due to International Energy & Mineral Resources Investment (Hong Kong) Company Limited (“IEMR HK”) in the principal amounts of Cdn$1,000,000 (due with accrued interest on December 15, 2017) and US$1,500,000 (with US$597,500 (including US$97,500 of accrued interest) being due on November 25, 2017, and the remaining US$1,000,000 (with accrued interest) due on December 15, 2017), along with a penalty fee of US$300,000 (the “Penalty Fee”) which IEMR HK has confirmed is due on December 15, 2017, and towards a pre-feasability study for the CuMo Project and general working capital purposes. There can be no assurance that the Company will be able to raise enough funds from the Rights Offering or from other sources of funding to repay the IEMR Notes and Penalty Fee in full prior to the due dates for payment. |