Pretty penny ITH paid for this new ground......
International Tower acquires Alaska claims, rights
2011-12-14 09:11 ET - News Release
Mr. James Komadina reports
INTERNATIONAL TOWER HILL MINES ACQUIRES MINING CLAIMS NEAR LIVENGOOD PROJECT, ALASKA
International Tower Hill Mines Ltd.'s wholly owned subsidiary, Tower Hill Mines Inc., has completed transactions to acquire certain mining claims and related rights in the vicinity of the company's Livengood project located near Fairbanks, Alaska. The assets, which were purchased for aggregate consideration of $24.5-million (U.S.) in cash, relate to land that was previously vacant or was used for placer gold mining. The acquisitions enable the company to pursue additional site facility locations and to investigate other land use opportunities including the potential for placer gold extraction in the near term.
The acquisitions were completed pursuant to a purchase agreement dated Dec. 13, 2011, with various individual vendors pursuant to which the company acquired certain assets for consideration of approximately $13.5-million (U.S.) plus an additional contingent payment based on the five-year average gold price from the date of the acquisitions, which contingent payment will equal $23,148 (U.S.) for every dollar that the average gold price exceeds $720 (U.S.) per troy ounce. If the average gold price is less than $720 (U.S.), there will be no additional contingent payment. Effective Dec. 13, 2011, the company has also exercised its option to purchase certain mining claims currently leased by the company for consideration of approximately $11-million (U.S.).
The consideration for the acquisitions was financed by the company through cash on hand. Following completion of the acquisitions, the company has sufficient working capital to meet its budget requirements through calendar year 2012.
"The acquisition of additional land surrounding our Money Knob gold deposit affords us much greater flexibility for selecting future site facility locations as well as other land use opportunities that may create significant shareholder value," stated Jim Komadina, chief executive officer of ITH. "Given the robust gold price environment for the foreseeable future, we are actively looking at any and all opportunities to ensure the successful development of the Livengood gold project into one of North America's newest -- and largest -- gold mines." |
