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CuMoCo said the circa 6,582ha Bleiberg zinc-germanium-lead-cadmium-fluorite mining project had operated for about 700 years until 1993, when it closed as part of a larger bankruptcy of an Austrian state-owned mining conglomerate.
"With the recent increase in demand and prices for the metal contained in Bleiberg, this is a tremendous opportunity to add significant value to CuMoCo in the short-term, while concentrating on the longer-term and larger CuMo project," president and CEO Shaun Dykes said.
Under the agreement with an unnamed vendor, which is subject to TSX Venture Exchange approval, Idaho CuMo would issue 20 million share or at least 19% of its stock, and CuMoCo would issue 10 million shares at a deemed price of C4c, its closing price on December 1.
In addition to the share issue, the Bleiberg vendor would also receive a payment of €235,000 (US$285,000) within 10 days of Idaho CuMo (ICMC) receiving initial funding of at least US$2 million.
ICMC intended to list on a US stock exchange within a year of receiving the $2 million, it said, however if this did not occur within the 12-month timeframe, CuMoCo would issue a further 6 million shares to continue with the Bleiberg agreement.
CuMoCo shares were reinstated to the TSXV in November after a cease trade order issued two years earlier was revoked.
The order had been issued regarding disclosures made in 2018 and the company subsequently filed a new technical report for its flagship CuMo molybdenum, copper, silver, tungsten and rhenium project in Idaho in June, and brought its continuous disclosure records on SEDAR up to date.
CuMoCo reported a working capital deficiency of $7.8 million at September 30.
Several multi-million dollar deals organised to sell a stake of its ICMC have fallen through, with CuMoCo saying at September 30 it was still awaiting the next payment in terms of the most recent agreement, which was updated in January 2018.
Since resuming trading a month ago, CuMoCo shares (TSXV: MLY) have ranged from 3-5.5c.
They closed up 33% to 4c on Friday to capitalise it at $7.3 million (US$5.7 million).
