American CuMo Mining Corporation (CuMo) has 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. (PS Resources), a subsidiary of a leading Hong Kong based commodities group, and MCC8 Group Company Limited (MCC8, and collectively with PS Resources, the Chinese Partners), a China-based leader in Engineering, Procurement and Construction (EPC) and management for non-ferrous metallurgical industry projects, with respect to 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 the development of the CuMo Project. Specifically, the Chinese Partners are to arrange a minimum of USD $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.