IDM NEWS $5 Million Financing
IDM Mining arranges $5-million private placement
2016-09-09 13:25 ET - News Release
Mr. Robert McLeod reports
IDM MINING ANNOUNCES PRIVATE PLACEMENT
IDM Mining Ltd. has appointed a syndicate of agents led by Paradigm Capital Inc. and Medalist Capital Ltd., and including Haywood Securities Inc. and Red Cloud Klondike Strike Inc., to sell, by way of a private placement, units of the company and flow-through shares for gross proceeds of up to $5-million. Each Unit is offered at a price of $0.17 and will be comprised of one common share (a "Common Share") of the Company and one half of one common share purchase warrant, each whole warrant entitling the holder thereof to acquire one Common Share of the Company at a price of $0.25 for a period of 24 months from the date of closing of the Offering. In the event that the share price on the TSX-Venture Exchange closes at or above $0.37 for a period of 20 consecutive trading days, the Company may provide holders of the Warrants with a notice of expiry, 30 days after which the Warrants will expire. Each Flow-Through Share is offered at a price of $0.21, with no warrant attached. Additionally, the Company has granted the Agents an option, exercisable, in whole or in part, at any time up to 48 hours before the closing of the Offering, to sell up to an additional 15% of the Offering. The Offering is subject to approval by the TSX-Venture Exchange.
The proceeds from the Offering shall be primarily used for additional resource expansion drilling, exploration and permitting at the Red Mountain project ("Red Mountain") as well as work towards the completion of a feasibility study for Red Mountain and for general corporate and working capital purposes. Gross proceeds from Flow-Through Shares will be used to incur "Canadian exploration expenses" that will also qualify as "flow-through mining expenditures".
The Company has agreed to pay the Agents a cash fee equal to 5.0% of the gross proceeds from the Offering. As additional compensation, the Agents will be issued compensation options entitling the Agents to purchase that number of Common Shares equal to 5.0% of the number of Securities sold under the Offering exercisable at $0.25 for a period of 12 months from the closing date of the Offering.
The closing of the Offering is expected to occur on September 29, 2016 and is subject to receipt of all necessary regulatory approvals. The Securities, including all underlying securities thereof, and the compensation options issued with respect to the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws. A maximum of 33,823,530 Units are issuable under the Offering, which assumes that the maximum gross proceeds are raised through the issuance of Units only.
About Red Mountain
IDM Mining is currently earning an option to acquire a 100% interest in the 17,125 hectare Red Mountain property, located 15 kilometers northeast of Stewart, BC. Numerous precious and base metal targets have been identified by IDM and previous operators over a 15 km by 4 km trend of strong alteration and mineralized prospects. Since discovery in 1989, in excess of $45 million has been spent on the Red Mountain property including a production sized underground ramp.
About IDM Mining Ltd.
IDM Mining Ltd. is mineral exploration and development company (TSX VENTURE:IDM) based in Vancouver, BC, Canada. The Company's current exploration and development activities are focused on precious metals in British Columbia and Yukon, with a primary focus on the high grade underground Red Mountain project, which has entered the BC and Canadian environmental assessment process. Further information can be found on the Company's website at www.IDMmining.com.
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