|Canadian, Chinese companies sign deal on proposed Idaho mine
A Canadian mining company has reached an agreement with a Chinese firm that will bring $700 million in financing for a possible open-pit molybdenum mine near Boise, Idaho.
Vancouver, British Columbia-based American CuMo Mining Corp. said it reached the deal with Hong Kong-based MCC8 Group Co. Limited.
American CuMo said it marks a major step in paying for a feasibility study and will keep local control of the project with its subsidiary, Boise-based Idaho CuMo Mining Corp.
The area northeast of Boise contains the largest unmined deposit of molybdenum in the world, the company said.
Estimates run from at least 2 billion tons to as much as 4 billion tons of molybdenum, copper and silver worth up to $60 billion at current prices.
Estimates put the deposits at 65 percent molybdenum, 32 percent copper and 3 percent silver, Shaun Dykes, American CuMo's president and chief executive officer, said Thursday.