NEWS
International CuMo Mining Corporation Signs Term Sheet to Merge with US Public Traded Company
Newsfile Corp.
Newsfile Corp
Vancouver, British Columbia--(Newsfile Corp. - September 20, 2022) - Multi-Metal Development Ltd (TSXV: MLY) (OTC Pink: MLYCF) (formerly American CuMo Mining Corporation) and its subsidiary, International CuMo Mining Corporation (ICMC), are pleased to announce that ICMC has signed a non-binding term sheet to merge with a US "shell corporation," Joway Health Industries Group Inc. (OTC Pink: GTVI). Upon completion of the merger, Joway's name will be changed to International CuMo Mining Corporation, and it will become the operating entity for the CuMo project, the world's largest primary molybdenum deposit and the largest silver and one of the top 10 copper deposits in the US.
The purpose of the merger is to access US capital markets, in part to finance the company's pre-feasibility and feasibility studies, and in part to reflect the project's important role in the US effort to reach self-sufficiency with respect to mineral resources.
ICMC's assets will be valued at US$40mm for purposes of the merger. The transaction will involve no cash consideration. Current owners of GTVI will retain a9.9% stake in the merged company, with ICMC holding the balance. The merged company will be managed by ICMC's existing management team, and ICMC will have the right to appoint the Board of Directors of the merged company.
The transaction is a first step towards up-listing the merged company to a senior US exchange.
As presently drafted, the term sheet contemplates a lockup applying to all material shareholders of the merged company. This lockup will remain in effect until the earlier of 18 months from the closing of the transaction or 3 months following an up-listing to a senior US stock exchange.
The Parties are working to complete a definitive and binding agreement by November 1, 2022. Such an agreement will include all customary representations, warranties and indemnities, and will be subject to necessary approvals. ICMC has been represented in this matter by Newbridge Securities, which will earn a commission for facilitating the transaction.
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 prepared the technical information contained in this news release.
About Multi-Metal Development Ltd ("MultiMet")
MultiMet is focused on advancing the CuMo Project owned by its subsidiary International CuMo Mining Corp. towards feasibility and working on its Bleiberg project in Austria. 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.multimetdev.com.
For further information, please contact:
Multi-Metal Development LtdShaun Dykes, President and Chief Executive Officer
Tel: (604) 689-7902
Email: info@multimetdev.com
