American CuMo Mining Corporation(TSXV: MLY) (OTC Pink: MLYCF)(CuMoCo or the Company) is pleased to announce that it has received a decision from the United States Department of the Interior’s Bureau of Land Management (BLM) that the surface management notice for the Company’s Calida Gold project, located in Salmon, Idaho is complete and the reclamation cost estimate has been approved. The notice will remain in effect until June 13, 2019, unless the Company notifies the BLM Salmon Field Office beforehand that operations have ceased and reclamation is complete.

The BLM reviewed the reclamation cost estimate and determined that the estimate of US$39,207 is sufficient to meet all anticipated reclamation costs for the notice. CuMoCo has submitted a financial guarantee of US$39,207 with the appropriate form to the BLM Idaho State Office and has received written notification from that office accepting and obligating the financial guarantee, thereby allowing the Company to commence operations immediately at Calida Gold, pursuant to the notice.

We are delighted to have received on schedule the BLM’s decision enabling us to start work on our Calida Gold project. We are currently doing some minor road work which should be completed within a week in preparation of Timberline Drilling arriving after that and our 2017 drilling program commencing. We look forward to keeping shareholders updated on our progress, said Shaun Dykes, President and CEO of American CuMo Mining.

The Company also announces that the necessary environmental surveys required for completing the permitting process for its CuMo Project are well underway and further updates will be announced shortly.

Finally, with regards to the proposed strategic financial partnership with Millennia Minerals Pte Ltd. (Millennia), the Company is pleased to provide additional information to the last update provided to shareholders in its June 7, 2017 news release. As previously reported, after they entered into the February 27, 2017 MOU (the Original MOU), the Company and Millennia engaged in further negotiations that changed the timing and structure of Millennia’s proposed investment. The details of the modified structure and timing of the proposed investment, which were set forth in the Company’s June 7, 2017 news release, were agreed to in a Letter of Intent between the Company and Millenia (the LOI), which superseded and replaced the Original MOU in its entirety and, subject to certain exceptions set forth in the LOI, is non-binding. Since the June 7, 2017 news release, the Company and Millennia have agreed to the following additional modifications to the proposed terms of Millennia’s investments in the Company, Poly Resources, LLC (Poly Resources) and Idaho CuMo Corporation (Idaho CuMo):

  • Millennia has requested and CuMoCo has agreed to extend the due diligence period under the LOI through July 13, 2017, and Millennia is continuing its legal, technical and financial due diligence.

  • Each of Millennia’s US$5 million initial contribution to Poly Resources, of which US$1 million has already been paid, and which would give it the right to acquire a 25% interest in Poly Resources, and Millennia’s second $5 million contribution to Poly Resources, by which it would earn an additional 25% interest in Poly Resources, would be made in instalments to be agreed, and the first instalment would have to be made on or about July 10, 2017.

  • The remaining US$500,000 of the US$1 million payment already delivered by Millennia to Poly Resources is now released for use by Poly Resources on the drilling program at its Calida Gold project, subject to the potential repayment obligations set forth in the LOI.

  • Millennia’s US$10 million initial contribution to Idaho CuMo, which would give it a 2% equity interest in Idaho CuMo, would be made in instalments to be agreed, and the first instalment would have to be made on or about July 20, 2017.

  • Millennia’s subscription for 11 million common shares of the Company for an aggregate subscription price of US$3 million would occur at the same time as the first instalment of the Idaho CuMo contribution was made.

The transactions contemplated by the LOI, as modified, remain subject to negotiation and execution of mutually satisfactory definitive agreements, receipt of all required board and shareholder approvals by the Company and Millennia, receipt of all applicable regulatory, governmental and third party consents and Millennia’s satisfaction in its sole discretion with its ongoing due diligence.

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

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