Vancouver, British Columbia--(Newsfile Corp. - October 30, 2020) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo" or the "Company") the Company is providing the following updates.
On February 25, 2017, the Company entered a strategic financial relationship with Millennia Minerals (Singapore) ("Millennia") initially through a binding Memorandum of Understanding (MOU) to be further consummated by the execution of a Definitive Agreement. The agreement calls for the Company to sell 20% ownership shares of Idaho CuMo to the Joint Venture and sell an 80% interest in Poly Resources to Millennia. Modifications to the details of the agreement were made in May 2017 and a Millennia strategic investment partner (Acepac Holdings) advanced the sum of US$1 million to the Company against a 5% ownership in Poly Resources. In January 2018, a Heads of Agreement was signed updating the payment terms of the arrangement. (See note 20d of the interim March 31, 2020 financials for details).
As of this news release, the Company is still awaiting the next payment under the terms of the deal. Under terms of the agreement there is no fixed due date for the payment and Millennia has not delivered any notice of termination, last phone communication received by the Company stated Millennia was still attempting to raise the funds for the deal and was having problems that were causing delays.
In regard to the CuMo Project (Idaho CuMo Mining), the Company is awaiting the US Forest Services approval for its drilling exploration permit which is currently in the final stages of analysis.
The Calida gold project (Poly Resources) claims staked by the Company have been renewed for another year but due to the COVID-19 travel restrictions no work is currently planned for the project at this time.
In regard to the lawsuit filed by Acepac Holdings in regard to the US$1 million, it is currently undergoing document discovery, since January 2020, Company's position being that the Company does not owe Acepac any funds, as the 5% ownership in Poly Resources has been delivered to Acepac and the funds were advanced on behalf of Millennia and they are the ones Acepac should be pursuing.
Finally, in regard to the lawsuit filed by IEMR HK and the Companies counter suit, first disclosed in the news release dated February 28 2018, whereby IEMR HK's legal team terminated negotiations and submitted a claim for judgment against the Company in the British Columbia Supreme Court for CAD$1 million and US$1 million plus interest and court costs. In response the Company filed counterclaim against IEMR HK and certain other related entities that has the potential to more than offset the claims of IEMR HK. At the current time, both suits are currently awaiting delivery of the IEMR HK documents requested by the Companies lawyers in January 2020 . Both lawsuits are on hold until the requested documents are delivered.
As of this news release, the Company is not in compliance with Exchange Policy 3.2, section 4.1 with respect to not holding an AGM within 15 months from the Company's last preceding annual meeting of Shareholders. The Company has been placed on notice to hold an AGM by no later than January 15, 2021 and the Company intends to hold the meeting prior to that date. The date of the annual meeting has been set for Jan 12, 2021 .
About CuMoCo
CuMoCo is focused on advancing its CuMo Project towards feasibility. For more information, please visit cumoco.com, idahocumo.com and 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.
Cautionary statement regarding 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, 2020. 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.
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