Vancouver, British Columbia--(Newsfile Corp. - May 12, 2016) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink:
MLYCF) ("CuMoCo" or the "Company") is pleased to announce that it is arranging a non-brokered private placement of up to
10,000,000 units (the "Units") at a price of Cdn$0.10 per Unit to raise gross proceeds of up to Cdn$1,000,000 (the "Private
Placement"). Each 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$0.15 per common share for a period of five years from the date of issue,
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$0.20 per share for a period of 10 consecutive trading days. In such case, the Company may
give notice to the holders of Warrants that the Warrants will expire 20 days from the date of providing such notice. The Private
Placement is subject to TSX Venture Exchange ("TSXV") approval.
The Company also announces its initiative to raise additional funds for the development of its CuMo Project in Idaho, USA,
through the sale of up to a 2% Net Smelter Returns Royalty interest in the project (the "NSR Royalty"). Funds raised from the sale
of the NSR Royalty and from the Private Placement are to be used to continue the advancement of the CuMo Project, including
drilling to produce the necessary engineering data for the final mineral resource estimate and economic optimizations,
environmental base-line studies, and completing an updated economic feasibility analysis that incorporates advanced ore-sorting
studies, final metallurgical testing and processing flow-sheet design, and operation analysis and conception.
CuMoCo intends to pay a finder's fee of 5% in connection with the sale of the NSR Royalty and a 10% finder's fee in respect of
the Private Placement, subject to receipt of TSXV approval.
The securities offered pursuant to the Private Placement have not been, and will not be, registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities Act") or any United States state securities laws, and may
not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any
applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities
laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United
States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful.
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 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
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 raise sufficient funds to advance its CuMo project towards 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
results of exploration and development activities; the ability of CuMoCo to raise sufficient funds to complete in-fill drilling,
environmental baseline studies, an updated preliminary economic analysis and 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 a court will
not intervene with CuMoCo's proposed exploration and development 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 and
development 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.
