VANCOUVER, Jan. 21, 2014 /PRNewswire/ - American CuMo Mining Corporation ("CuMoCo" or the "Company") (TSXV: MLY; OTCQX: MLYCF) announces recent changes to its management team and that the Company and IEMR Resources Inc. ("IEMR") have amended (the "Amendment") the option agreement dated January 26, 2010, as amended (the "Option Agreement"), with respect to the Pine Tree Copper-Molybdenum Property in Nevada (the "Pine Tree Property") pursuant to which IEMR was granted the option (the "Option") to earn a 100% interest, subject to an underlying net smelter returns royalty (the "Underlying NSR"), in the Pine Tree Property.
The Board of Directors of the Company have resolved to undertake a search for a new President/ Chief Executive Officer. Hongxue Fu, formerly the Company's executive Chairman and President, has been appointed executive Chairman; Shaun Dykes, formerly the Company's interim Chief Executive Officer, has been appointed Chief Operating Officer and Charles Yuen, recently elected a director of the Company, has been appointed as Executive Vice-President. Messrs Dykes and Yuen will be responsible for managing the day-to-day operations of the Company until the new President and Chief Executive Officer has been appointed. The Board has also appointed an Audit Committee comprised of Joseph Baird, John Moeller, Charles Yuen and recently-elected director Yiming Xie.
Amendment to Pine Tree Option Agreement
Prior to the Amendment, IEMR had: (a) made all cash payments due under the Option Agreement to the Company except the final US$200,000 cash payment due on or before June 25, 2014 (the "Final Cash Payment"); (b) issued a total of 4 million common shares of IEMR (the "Issued Shares") to the Company pursuant to the Option Agreement and was to issue an additional 1 million common shares (the "Final Share Instalment") to the Company on or before June 25, 2014; and (c) incurred the amount of exploration expenditures on the Pine Tree Property required to exercise the Option.
Pursuant to the Amendment, the parties agreed to amend the Option Agreement to cause IEMR to pay the Company the Final Cash Payment immediately on the following terms: (a) that the size of the Final Cash Payment be reduced to US$185,000 (the "Amended Payment"); that IEMR not be required to issue the Final Share Instalment to the Company; and that the Company return the Issued Shares to IEMR for cancellation.
The Company confirms receipt of the Amended Payment from IEMR, and as such, IEMR has earned a 100% interest in the Pine Tree Property, subject to the Underlying NSR.
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 a strong foundation from which to move the Company and the CuMo Project forward.
On behalf of the Board of Directors of
American CuMo Mining Corporation
Chief Operating Officer
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 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 September 30, 2013. 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.
SOURCE American Cumo Mining Corporation