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American CuMo targeting up to US$24M with funding initiatives

American CuMo Mining Corp. said June 5 that it is planning to raise up to US$24 million from three funding initiatives: a private placement, convertible debentures and the sale of silver stream debentures.

The placement will comprise units priced at 10 cents apiece, with each unit to consist of one share and one two-year warrant exercisable at 15 cents.

The company is also offering investors a five-year secured debenture that bears an 8% interest and is convertible at 7.5 cents per common share as well as a secured silver stream debenture that carries an 8.75% interest and allows the holder to buy silver from future production at US$5/oz.

American CuMo expects to secure up to US$4 million from the placement and convertible debentures and up to US$20 million through the silver stream transaction.

The company, which is focused on advancing its CuMo copper-molybdenum project in Idaho toward feasibility, did not specify how it plans to use the proceeds.

American CuMo's stock jumped by more than 18% in April following the release of an updated independent preliminary economic analysis for the CuMo project. The study defined a posttax net present value of US$5.67 billion, at a 5% discount, with a 25% internal rate of return.

In mid-2016, the company entered into an agreement under which two Chinese partners would arrange at least US$700 million in project financing for the CuMo project in exchange for an 80% net proceeds interest in a related joint venture.