Iemr Announces Closing of Acquisition of Cumo Shares
IEMR RESOURCES INC.
1500 West Georgia Street, Suite 1300 Vancouver, British Columbia V6G 2Z6
TSXV: IRI May 27, 2016
IEMR ANNOUNCES CLOSING OF ACQUISITION OF CUMO SHARES
(Vancouver, May 27, 2016) – IEMR Resources Inc. (TSXV: IRI) (the "Company" or "IEMR) Further to the Company's news release of March 24, 2016 the Company's announces that it has completed the acquisition of 9,000,000 previously issued common shares of American CuMo Mining Corporation ("CUMO") from International Energy & Mineral Resources Investment (Hong Kong) Company Limited ("IEMR HK") in exchange for the issuance of 15,300,000 common shares of the Company to IEMR HK. IEMR HK is a company controlled by the Company’s former CEO, namely Hongxue Fu, and his wife.
On March 23, 2016, which was the trading day before the Company's news release of March 24, 2016 announcing the proposed acquisition, the market value of the 9 million CUMO shares was $765,000, based on the closing price of $0.085 for CUMO's shares. The number of IEMR shares issued in exchange for the CUMO shares was calculated using the deemed price of $0.05, which is much higher than the closing price of $0.005 for the Company's shares on March 23, 2016. The purchase of the CUMO shares from IEMR HK is therefore a favourable transaction for the Company in light of the current market value of the CUMO shares as compared to the IEMR shares. The Company intends to sell its CUMO shares, from time to time, and the net proceeds of sale will provide the Company with working capital.
The acquisition of the CUMO shares was a 'related party transaction' because IEMR HK and Mr. Fu were 'related parties' to the Company at the time of signing of the purchase and sale agreement. At the Company's annual general meeting on May 9, 2016, the disinterested shareholders approved the acquisition and the votes of IEMR HK, Mr. Fu, his wife, their son Zheng Fu and his company IEMR Group Limited were excluded from tabulation of the votes.
About IEMR Resources Inc.
IEMR is a junior mining company listed on the TSX Venture Exchange under the symbol “IRI”. The Company is directly tied to and has been formed from capital sources in China and Canada. IEMR is devoted to taking full advantage of its capital by participating in mineral and energy projects ranging from exploration, development, production, processing, smeltering and mineral trade with a long-term view. The Company’s emphasis is on the Chinese and Canadian markets utilizing the capital stemming from China and the resources and market of Canada to create a maximum return for shareholders. The Company’s investment priorities ranked in order are copper, chromium, nickel, manganese, uranium, platinum silver, diamonds and molybdenum. Investment and or acquisitions in exploration projects will be focused in chromium, manganese, uranium and potash. The Company has already formed alliances of cooperation with large smeltering steel, copper, lead, zinc and aluminum companies.
For further information on IEMR, please refer to the Company’s profile on SEDAR at www.sedar.com or the Company’s website at www.iemr-resources.com.
On behalf of the Board of Directors of
IEMR RESOURCES INC.
/s/"Charles Yuen"
Charles Yuen Chief Financial Officer and Interim Chief Executive Officer
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For further information, contact:
Charles Yuen Chief Financial Officer and Interim Chief Executive Officer IEMR Resources Inc.
Tel: (604) 877-8563 Email: [email protected] Website: www.iemr-resources.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains "forward-looking statements" including but not limited to statements with respect to IEMR’s plans, the estimation of a mineral resource and the success of exploration activities. Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the successful integration of acquisitions; risks related to general economic and market conditions; closing of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities; possible variations in mineral resources or grade; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations. Although IEMR has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements 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 statements. IEMR undertakes no obligation or responsibility to update forward-looking statements, except as required by law.