American CuMo Mining Closes First Tranche of Silver Purchase Financing

American CuMo Mining Closes First Tranche of Silver Purchase Financing

American CuMo Mining Corporation announced that its subsidiary International CuMo Mining Corporation (ICMC) has closed the initial tranche of the sale of silver units worth 1,089,00 US dollars based on the previously announced silver unit financing lately. Of this Initial Tranche, the company subscribed for 1,000 shares, and the subscription price was again included in ICMC’s intercompany loan to the Company.

The Financing involves ICMC selling up to 12,500 units at US$1,000 per unit, each unit including secured notes with a principal of US$1,000 and the right to enter into a silver sale and purchase agreement with ICMC. The Notes are secured by certain assets of ICMC; they are calculated at an annual interest rate of 7.5% and are paid semiannually on June 30 and December 31; and the term of office is until May 31, 2028.

With the agreement of the note holder, ICMC may prepay all or any part of the outstanding principal under the note at any time, provided that any advance payment of all or part of the note will cause the silver purchase right to expire immediately. Computershare has agreed to act as the trustee of the notes. These notes can be traded on the Vienna Stock Exchange and are determined as collateral.

The proceeds from the sale of the unit will be used to further develop American CuMo Mining’s flagship asset CuMo project, a large molybdenum, copper, and silver asset located in Idaho, including updating resource calculations, updating economic analysis, expanding metallurgical testing, and conducting landfills Drilling and conducting environmental baseline studies, as well as reducing the current trade payables disclosed in the issuer’s consolidated financial statements, and for general working capital purposes.

The proceeds can also be used to initiate data collection and exploration work to be carried out in the Bleiberg project in Austria. Since the beginning of 2021, the recent rise in metal prices has continued to encourage the company; since the beginning of 2021, molybdenum has risen by 48%, copper has risen by 31%, and silver has risen by 6%.

While completing the Initial Tranche, Acepac Holdings Inc. and the company have agreed to settle their ongoing litigation. The company will transfer the 1,000 units obtained from ICMC to Acepac. In return, Acepac will waive all claims on the company.

In other news, ICMC has applied for US government grants related to the development of key minerals in the United States. The grants currently applied for involve partnerships with various academic institutions, involving the use of rhenium to capture and sequester carbon dioxide and the development of high-temperature jet engines and rocket engines. After receiving the application, ICMC is waiting for notification of its status. The approval process is expected to take several months.

The board of directors has decided to terminate the Calida option agreement signed in October 2016, according to which all claims owned by Calida are transferred to the original owner. Calida is a grassroots project that does not meet the company's goals, and its disposal will allow the company to focus on its two main projects, the CuMo and Bleiberg.

In Bleiberg, as the Covid-19 restrictions are slowly decreasing, the company has started a dialogue with various Austrian government agencies to obtain access to historical mine records, especially drilling results, historical mining resources and reserves, and a 20-kilometer-long mining complex. Mine production, targets and ore body development in the body.

American CuMo Mining focuses on advancing the feasibility of its CuMo project and developing its zinc-germanium-lead-cadmium-fluorite deposit in Austria. The management is continuing to build an even stronger foundation n to promote the vigorous development of the company and its projects.

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