Idaho CuMo Mining Corporation signs Memorandum of Understanding for project development
PARTNERS ARE EXPERTS IN GLOBAL SUSTAINABLE DEVELOPMENT
BOISE, Idaho—June 7, 2016—American CuMo Mining Corporation (TSXV: MLY; OTC-Pink: MLYCF) and its subsidiary, Idaho CuMo Mining Corporation (ICMC) are pleased to announce that they have signed a non-binding Memorandum of Understanding (MOU) with Ping Shan Resource Holdings Ltd. and MCC8 Group Company Limited. The MOU details an arrangement made with Chinese partners for development of the CuMo Project located in Boise County, Idaho. The newly established arrangement will leverage the Chinese partners’ expertise in engineering, procurement, construction and management of sustainable non-ferrous metallurgical industry projects in a joint venture with Idaho CuMo Mining Corporation.
The MOU formalizes the Chinese partners’ understanding and intentions with respect to arranging a minimum of $700 million in project financing in exchange for 80 percent of net proceeds interest from the joint venture. Subsequent funding of the joint venture is to be provided on a pro rata basis. At the appropriate time, Idaho CuMo intends to seek mining equipment equity loans to cover its 20 percent contribution to the partnership. The terms of the MOU provide that once Idaho CuMo has obtained $25 million in new capital, the Chinese partners would be granted exclusivity for one year to perform due diligence, obtain all required approvals and secure funding to complete the proposed transaction.
“Our team looks forward to working with Idaho CuMo Mining Corporation, the State of Idaho, and community stakeholders to promote a sustainable project and to create good-paying Idaho jobs,” stated William He, President and CEO of MCC8 Capital Limited and Non-Executive Chairman-Designate of Idaho CuMo Mining Corporation.
The joint venture MOU expressly states that the CuMo Project will continue to be owned by Idaho CuMo Mining Corporation. Management of the Project will be administered by a joint venture management committee which will be made up of two members from ICMC and two members delegated by the Chinese partners with appropriate provisions to resolve deadlocks. According to the MOU, the management committee will be charged with reaching a production decision for the Project and commissioning an independent Definitive Feasibility Study (DFS) which addresses all environmental studies, permits and bonding arrangements.
“We are extremely pleased that our CuMo Project has been met with genuine interest from one of the world’s largest and most prestigious companies in the non-ferrous metallurgical industry,” stated Shaun Dykes, CuMoCo’s President and CEO. “MCC8 not only has an impressive financial background, the company has also demonstrated its outstanding capability for sustainable green solutions and declared commitment to modern environmental solutions in its many recent projects. CuMoCo looks forward to the CuMo Project being developed to the benefit of its many stakeholders, including Boise County and the State of Idaho.”
MCC8 has a 60-year history of construction and completion of more than 80 large non-ferrous metallurgical projects and generated revenues of $2 billion in 2015. The company currently has more than 10,000 full-time employees.
ABOUT PING SHAN RESOURCES AND CHINA MCC8 GROUP
Ping Shan Resources is part of a leading Hong Kong based commodities industry group (the “Group”). The Group has been engaged in the production of cotton, tea and mining since the 1980’s in Southeast Asia and China. The Group is the 67 percent shareholder of a Hong Kong publicly-traded company. Within the mining segment, the Group owns major interests in a copper mine and one of the largest talc mines in China.
Located in Hong Kong and China, MCC8 Group Company Limited (MCC8) (formerly Jinchuan Metals Nonferrous Construction Company), is a leader in engineering, procurement, project financing construction and management organization for non-ferrous metallurgical industry projects in Asia and abroad and a key partner of the Jinchuan Group, which is one of the world’s top three nickel, cobalt and copper multinationals by market share. MCC8 has a 60-year history of construction and completion of more than 80 large non-ferrous metallurgical projects. MCC8 generated revenues of US$ 2 billion in 2015 and currently has more than 10,000 full-time employees. Furthermore, MCC8 and China MCC21 Group Ltd – a wholly-owned subsidiary of China Metallurgical Group Corporation – have formed a consortium to provide technical and operational support for international precious metals and other mining projects.
The company has invested in green resource-recovery wastewater plant renovation and expansion projects in Indiana and Tennessee.
For more information, see http://www.chinamcc8.com
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
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.
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 as the Company’s ability to successfully negotiate the Definitive Agreement with the Chinese Partners, the Company’s ability to move the CuMo Project through development to feasibility and production, and for the Company 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, 2016. 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.