(TSXV:,OTCPINK:MLYCF) announce that Idaho CuMo Mining Corporation (“Idaho CuMo”, a wholly-owned subsidiary of CuMoCo), has finalized an agreement with a private California-based investor for the purchase of up to twelve US$250,000 units of the Company’s Silver Stream Debentures.
Under the terms of the agreement, the investor has purchased two Units for a total of US$500,000 and has been granted an option to purchase an additional two Units before December 31, 2016 and another two Units before December 31, 2017, provided the first two Units are purchased by December 31, 2016. The total investment is US$1,500,000 for six Units. The investor has agreed to accrue all interest payments and in so doing has been granted the right to purchase six more Units for an additional US$1,500,000 at the time the Company delivers a decision to place the CuMo Project into commercial production.
CuMoCo’s Silver Stream financing is designed to raise up to US$25 million from the sale of Units at a price of US$250,000 per Unit, with each Unit consisting of a US$250,000 non-transferable loan (“loan”) and the right to convert the loan into a contract to purchase 375,000 ounces of silver at US$5 per ounce (with a 1% per annum inflation clause) from 50% of the silver production of the CuMo Project. The purchaser has the right to convert the loan to a contract within 30 days of the Company delivering a decision to place the CuMo Project into commercial production. The loan is secured by the assets of Idaho CuMo.
The post appeared first on .