American CuMo Mining and Idaho CuMo Mining Announce Debenture Conversion, Update on Financing, 2021 AGM Meeting Reminder

Vancouver, British Columbia--(Newsfile Corp. - January 5, 2021) - American CuMo Mining Corporation (TSXV: MLY) (OTC Pink: MLYCF) ("CuMoCo" or the "Company") and Idaho CuMo Mining Corporation ("ICMC") announced today that several of its convertible debenture holders have opted to convert their debentures and accrued interest into units consisting of shares and a warrant.

As a result of this conversion, the combined accrued interest of $66,810.14 is being converted into units at a price of $0.05 per unit. Each unit consists of one share and one five-year warrant with each warrant entitling the holder to purchase an additional common share of the Company (a "Warrant Share") at a price of $0.075 per Warrant Share for a period of five years from the closing date. The share for debt transaction will result in the issuance of 1,336,205 common shares of the Company and 1,170,625 warrants and is subject to TSX Venture Exchange approval.

The recently announced (December 8, 2020) $1 million 8.75% secured convertible debenture offering is approximately 90% sold and will be closing shortly. The debentures have a five-year term and are secured by the assets of the Company's subsidiary, ICMC.

In addition, ICMC is proceeding with offering US$10 million in secured convertible silver stream notes (the "Notes") that would commence trading on the Vienna Stock Exchange at the same time the Notes are issued. The Notes would bear interest at a rate of 7.5% per annum, payable/accruable semi-annually, and would have a minimum term of five years. The Notes would be convertible into the right to purchase silver from the production at the CuMo Project for US$5 per ounce. More details will be made available once final paperwork has been completed and approved by the Vienna Stock Exchange.

Finally, Shareholders are reminded of the virtual Annual General Meeting at 10 AM PST on January 12, 2021.

Registered Shareholders and/or Proxy Holders who wish to vote or ask questions during the call should pre-register prior to 48 hours before the meeting ,through the following link to obtain their unique PIN and dial in numbers for the meeting:

http://services.choruscall.ca/DiamondPassRegistration/register?confirmationNumber=10011902&linkSecurityString=a3c5ae0b2

After such registration has been completed, such registered Shareholders and/or duly appointed Proxy Holders will see on screen a unique PIN they have been assigned and dial-in phone numbers they will use to join the conference call. These details will also be sent to such registered Shareholders and/or duly appointed Proxy Holders by email in the form of a calendar booking. It is recommended that you attempt to connect at least ten minutes prior to the scheduled start time of the Meeting.

For all other Shareholders and stakeholders wishing to attend the Meeting by teleconference, but not ask questions, please dial the following toll free, or international toll number approximately five minutes prior to the commencement of the Meeting and ask the operator to join the Annual General Meeting of American CuMo Mining Corporation.

Toll-free (Canada/U.S.): 1-800-319-4610, or

Toll (international): +1-604-638-5340.

(International dial in numbers and/or a CallMe link are also available if you wish.)

In order to be permitted to ask questions at the Meeting, registered Shareholders and/or duly appointed Proxy Holders must register, as described above, prior to the proxy cut-off at time at 10 A.M. on January 8, 2021. To ensure a smooth process, the Company is asking registered participants to log in by 9:45 a.m. (Vancouver time) on January 12, 2021. Registered shareholders and duly appointed proxyholders will be asked to identify themselves before the beginning of the Meeting.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., President and CEO of the Company, is the designated qualified person for the CuMo and Bleiberg Projects and has prepared the technical information contained in this news release.

About CuMoCo

CuMoCo is focused on advancing its CuMo Project towards feasibility. Management is continuing to build an even stronger foundation from which to move the Company and its projects forward. For more information, please visit www.cumoco.com, www.idahocumo.com and www.cumoproject.com.

For further information, please contact:

American CuMo Mining Corporation
Shaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Email: info@cumoco.com

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.

Cautionary statement regarding forward‐looking information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation including, but not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, such the Company's ability to move its CuMo Project to feasibility and production, and to become one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Forward-looking information is based on a number of material factors and assumptions, including the result of exploration activities, the ability of the Company to raise the financing for a feasibility study and to put the CuMo project into production, that no labour shortages or delays are experienced, that plant and equipment function as specified that the Court will not intervene with the Company's proposed exploration activities at the CuMo Project, and the ability of the Company to obtain all requisite permits and licenses to advance the CuMo Project and eventually bring it into production. Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future prediction, projection or forecast expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of molybdenum, silver and copper; possible variations in grade or recovery rates; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing, as well as those factors disclosed in the Company's publicly filed documents, including the Company's Management's Discussion and Analysis for the period ended September 30, 2020. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/71417

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