VANCOUVER, June 30, 2014 /CNW/ - American CuMo Mining Corporation ("CuMoCo" or the "Company") (TSXV: MLY) (OTCQX: MLYCF) announces that it has received a notice filed on behalf of IEMR(HK), a company owned and controlled by Hongxue Fu, the chairman and director of the company, that the company has defaulted on its two debentures with IEMR(HK). IEMR(HK) alleges among other things that the company disposed of assets contrary to a section of the general security agreement.
The company will be seeking independent legal counsel to vigorously defend the allegations, as the company has not defaulted on any conditions of the debenture agreements.
IEMR(HK) also has filed an additional lawsuit against the company and the Chief Operating Officer, Shaun Dykes in which IEMR(HK) is seeking an oppression remedy.
Mr. Dykes has advised the Company that the allegations made by IEMR(HK) against him in the Notice of Claim are denied and without any merit.
The company has accepted the resignation of Aurora Davidson, the company's Chief financial Officer, as of June 30, 2014. The company wishes her success in her future endeavors and thanks her for her work on behalf of the company.
The company is currently interviewing highly qualified candidates for the position.
Certain Members of the board have formally requested Mr. Hongxue Fu's resignation from the board of directors, as a result of the filing of the notice claiming default.
Shareholders have called a special meeting of the company scheduled for July 22, 2014. Specific resolutions to be voted at the meeting include the removal of HongXue Fu, and Yi Ming Xie from the board of directors and appoint Thomas Conway as an additional director. The proxy materials and circular are being mailed to shareholders and are available at www.sedar.com.
CuMoCo is focused on advancing its CuMo Project towards feasibility and establishing itself as one of the largest and lowest-cost molybdenum producers in the world as well as a significant producer of copper and silver. Management is continuing to build a strong foundation from which to move the Company and the CuMo Project forward.
American CuMo Mining Corporation Directors
Joseph Baird, John Moeller and Shaun Dykes
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.
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, 2013. 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.
SOURCE: American Cumo Mining Corporation
For further information: American CuMo Mining Corporation, Tel: (604) 689-7902, Email: [email protected]