(TSXV:,OTCPINK:MLYCF) announced that it and its subsidiary, Idaho CuMo Mining Corporation (Idaho CuMo), have signed a non-binding Memorandum of Understanding (MOU) with Ping Shan Resource Holdings Ltd., a subsidiary of a Hong Kong publicly-traded commodities group, and MCC8 Group Company Limited, a China-based leader in Engineering, Procurement and Construction and management for non-ferrous metallurgical industry projects, with respect to funding the development of CuMoCo’s CuMo Project, a molybdenum-copper-silver deposit located in Idaho, USA.
The parties entered the MOU to formalize their understanding and intentions with respect to funding the strategic and sustainable development of the CuMo Project. Specifically, the Chinese Partners are to arrange a minimum of US$700 million in project financing for the development and construction of the CuMo Project in order to receive an 80 percent of net proceeds interest in the joint venture to be formed between Idaho CuMo and the Chinese Partners in respect of the CuMo Project (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 their 20 percent of the contributions to the Joint Venture.
The parties are to negotiate a binding, definitive project financing agreement (Definitive Agreement). The terms of the Definitive Agreement would be subject to various regulatory, government, Board of Director and shareholder approvals. The terms of the MOU provide that once Idaho CuMo has obtained US$25 million in new capital (Initial Funding), 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 (Exclusivity Period).
American Cumo President and CEO, Shaun Dykes, stated:
We are extremely pleased to see that our CuMo Project has been met with genuine interest from one of Asia’s largest and most prestigious companies in the nonferrous metallurgical industry, and a company that has a declared focus on modern environmental solutions. MCC8 not only has an impressive financial background, the company has also demonstrated its outstanding capability for sustainable green 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.”
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