American CuMo Mining Subsidiary signs US$200 Million Joint Venture Agreement

Vancouver, British Columbia–(Newsfile Corp. – November 21, 2016) – American CuMo Mining Corporation (TSXV:MLY,OTCPINK:MLYCF) announces that its wholly-owned subsidiary, Idaho CuMo Mining Corporation (“Idaho CuMo”) executed an arm’s-length Limited Liability Company Agreement (the “LLC Agreement”) with Platinum Resources International Limited, a corporation existing under the laws of the British Virgin Islands (“PRI”) and having its head office located in Hong Kong, to form Poly Resources LLC (“Poly”), a Delaware-incorporated limited liability company, for the purpose of conducting mining related activities as a joint venture. Mr. Yangbo Cai, CEO of PRI, executed the LLC Agreement on behalf of PRI.
Idaho CuMo currently holds 18,060 shares of Poly, representing a 100% interest, after having contributed into Poly its interest in the option agreement dated October 31, 2016 pursuant to which Idaho CuMo has the option to purchase a 100% interest in the Calida Mine gold property in Idaho, and having also assigned to Poly the exclusive right to purchase up to 20% of Idaho CuMo’s shares for an aggregate purchase price of US$100 million. Idaho CuMo will use the US$100 million proceeds from the sale of the shares to advance the CuMo Project to feasibility.
Subject to receipt of Hong Kong regulatory approval, PRI has the exclusive rights under the LLC Agreement to contribute or cause to contribute the sum of US$10 million within 90 days and to contribute or cause to contribute the sum of US$190 million over the period of 30 months. For each payment of US$10 million, PRI is to be issued 3,856 shares in Poly. Following the 20^th payment of US$10 million within the 30-month period, PRI would have contributed US$200 million and received 77,120 shares of Poly. In consideration for arranging this transaction, Strategic Venture Fund Ltd. is to be assigned 4,820 shares of Poly upon Poly’s receipt of the first US$10 million from PRI within 90 days. Once all shares have been issued as per the LLC Agreement, Poly would have a total of 100,000 shares outstanding, of which CuMo would own 18,060.
“I am extremely pleased to have executed this LLC Agreement on behalf of Idaho CuMo Mining at a signing ceremony with PRI in Shenzhen, China. We believe that it provides a tremendous opportunity to accelerate the development of both the CuMo and Calida projects,” said Trevor Burns, Executive Chairman of Idaho CuMo Mining Corporation.
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