Newsfile

American CuMo Mining Signs Agreement to Obtain 100% Ownership of CuMo Project and Provides Update on Calida Gold Drill Program

Newsfile Corp.
Updated

Vancouver, British Columbia--(Newsfile Corp. - July 18, 2017) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo" or the "Company") announces that it and its wholly-owned subsidiary, Idaho CuMo Mining Corporation ("Idaho CuMo") have executed a mining claims purchase agreement (the "Purchase Agreement") with CuMo Molybdenum Mining Inc. ("CuMo Molybdenum"), Western Geoscience Inc. ("Western Geoscience") and Thomas Evans pursuant to which CuMoCo and Idaho CuMo are to acquire from CuMo Molybdenum and Western Geoscience a 100% interest in the CuMo Project mining claims (the "Claims"). The Claims are currently subject to the terms of an option agreement between CuMoCo and CuMo Molybdenum dated October 13, 2004, and amended on January 14, 2005 (the "Option Agreement").

"Executing this mining claims purchase agreement represents a significant milestone and achievement for CuMoCo. Owning 100% interest in the CuMo Project means no longer having to make ongoing payments or pay expensive royalties, allowing the Company to proceed with developing CuMo unencumbered by option agreements and significantly increasing the value of our project", said Shaun Dykes, President and CEO of CuMoCo.

The Claims are unpatented and located in Sections 17 & 18, T8N; R6E in Boise County, Idaho. Certain of the unpatented claims are held in name by Western Geoscience (the "Western Geoscience Claims"), which corporation is controlled by Thomas Evans, and consequently, both entities have been added as parties to the Purchase Agreement. The Option Agreement contained an "area of interest" provision pursuant to which the Western Geoscience Claims became part of the Property.

Under the Option Agreement, the Company granted CuMo Molybdenum a 1.5% Net Smelter Return Royalty ("NSR") interest to a maximum of US$3,000,000 and thereafter a 0.5% NSR in respect of the CuMo Project, and the NSR is to be transferred by CuMo Molybdenum to CuMoCo pursuant to the Purchase Agreement.

The consideration payable for the assigning of all rights and ownership of the Claims to Idaho CuMo and the NSR to CuMoCo is as follows: upon the closing date of the agreement, the sum of US$500,000 in cash, a 7-year term silver convertible debenture in the aggregate principal amount of US$1,000,000 bearing an interest rate of 8.5% per annum and 2.5 million common shares of CuMoCo. Closing of the Transaction is subject to receipt of TSX Venture Exchange approval.

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