Item 2. Properties
Item
2. PROPERTIES.
Mining
Property
To
determine material mining operations in accordance with subpart 1300 of Commission Regulation S-K, management considered both quantitative
and qualitative factors, assessed in the context of the Company’s overall business and financial condition. The Company concluded
that, as of the date of the filing of this prospectus, its sole material mining operation is the CuMo Project. The Company will update
its assessment of individually material mines on an annual basis.
The
information relating to such sole material mining operation is contained in the technical report summary (“TRS”) relating
to the CuMo Project prepared in compliance with Item 601(b)(96) and subpart 1300 of Regulation S-K. Reference should be made to the full
text of the TRS, a copy of which is filed as Exhibit 96.1 to this registration statement and is incorporated herein by reference. A glossary
of terms used herein can be found in the TRS.
Pursuant
to Item 1302(b)(5) of Regulation S-K (17 C.F.R. §229.1302(b)(5)), the Company states that the TRS was prepared by Shaun M. Dykes,
M. Sc. (Eng), P. Geo of Geologic Systems, Ltd. Mr. Dykes served as a director of the Company and Vice President, Exploration. Mr. Dykes
met the qualifications specified under the definition of “Qualified Person” under Item 1300 of Regulation S-K. Mr. Dykes
resigned from his position as an officer of the Company and a member of the Board on March 27, 2023.
The
CuMo Project currently consists of one hundred and twenty-six (126) federal unpatented lode mining claims, and six (6) patented mining
claims. In total, the project comprises approximately 2,640 acres. The unpatented lode mining claims and patented claims are situated
in an unorganized mining district, in Boise County, Idaho, spanning Sections in Township 7N and 8N, Range 5E and 6E, Boise Meridian.
The
names of the unpatented claims, and the place of record of the location notices thereof in the official records of the Boise County recorder,
and the authorized office of the Bureau of Land Management are as follows:
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Table
1
The
following table lists the unpatented mining claims currently a part of the CuMo Project:
On
August 24, 2021, ICUMO and Computershare Trust Company of Canada entered into a 7.5% Secured Note Indenture under which the aggregate
principal amount of notes authorized to be issued is $15,000,00, with a maturity date of May 31, 2028. The 7.5% Secured Note Indenture
is secured by all of the mining claims of ICUMO that represent the CuMo Project, other than the patented lode mining claims located in
Section 13, Township 8 North, Range 5 East, Boise Meridian, Boise County, Idaho, as depicted on Mineral Survey 1706: (i) Blackbird; (ii)
Red Flag; (iii) Enterprise; (iv) Enterprise Fraction; (v) Commonwealth; and (vi) Baby Mine. In connection with this security interest,
ICUMO and Computershare Trust Company of Canada, as Mortgagee, signed a Real Property Mortgage under which the Mortgagee has the right
upon default by the mortgagor to choose to sell the real property constituting the unpatented claims set out above.
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Table
2
The
following table lists the patented mining claims currently a part of the CuMo Project:
On
October 31, 2014, as subsequently amended March 26, 2015, and January 29, 2016, ICUMO entered into a Loan Agreement with La Familia II,
LLC, evidenced by a secured promissory note, in the amount of $500,000. The promissory note accrues annual interest at 8.5%, has a maturity
date of December 31, 2025, and is secured by a first priority deed of trust over the patented mining claims listed above.
Location,
Access, Climate, Infrastructure and Topography
The
CuMo Project is situated in the mountains of south-central Idaho, in the Boise National Forest, in Boise County, Idaho, approximately
15 miles northeast of the town of Idaho City, near the unincorporated community of Centerville, roughly 37 miles on a straight line,
and 60 miles by road, from the city of Boise. Good all-weather highways, and USFS logging roads provide access to the project from Idaho
City and Centerville. The trip from Boise takes approximately 1.5 hours. Access can be limited during some winter months when significant
snow cover can impede passage via the Forest Service roads.
15
The
property is accessed by road from Boise by taking US State Highway 55 northerly for approximately 40 miles (65 km) to the town of Banks,
Idaho, and then east on the Banks Lowman Road towards the town of Garden Valley for approximately 10 miles (16 km). One mile east of
Garden Valley is a secondary road heading south across the Payette River. Following this secondary road, the westernmost edge of the
CuMo claim block is approximately 10 miles (16 km) from Garden Valley. Alternatively, access can be gained by traveling northeast from
Boise along Highway 21 past the towns of Idaho City and Centerville, along Grimes Creek, and then over the Grimes Pass.
The
elevation of the CuMo project ranges between 5,100 feet and 7,200 feet. The project site features a mountain top which contains the bulk
of the mineral deposit, deep ravines adjacent, and is largely forested, except for sections that have been cleared by several fires which
occurred in 2014 and 2016.
The
climate is defined by summer temperatures to a maximum of 100° F (38°C) and cold, windy winters with lows to -10° F (-23°C).
Precipitation is moderately light with an average rainfall of 30 inches (<1 meter) and an average snowfall of approximately 140 inches
(3.6 m). Vegetation in the project area consists of cedar, lodgepole pine, mountain mahogany, and juniper.
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The
area is serviced by the Idaho Power Company which supplies electricity to residents of Garden Valley, Lowman and Pioneerville. The nearest
rail line is the Idaho Northern & Pacific line formerly operated by Union Pacific that runs through the town of Banks, approximately
20 road miles (32 km) to the west of the property. Equipment, supplies, and services for exploration and mining development projects
are available at Boise. There is also a trained mining-industrial workforce available in Boise.
Exploration
and mining activities at the property can be conducted year-round, due to the established road system and its proximity to other infrastructure.
The property is large enough to accommodate exploration within the current CuMo deposit property footprint.
Item
3. LEGAL PROCEEDINGS.
We
have no knowledge of any material, active, pending or threatened proceeding against us or our subsidiaries, nor are we, or any subsidiary,
involved as a plaintiff or defendant in any material proceeding or pending litigation.
Item
4. MINE SAFETY DISCLOSURES.
Not applicable.
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PART
II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.