IDM Mining (IDM-V) Oct 10, '14 has closed the second tranche of its non-brokered private placement financing announced on Sept. 3 and Sept. 23, 2014. The second and final tranche of the offering consisted of 622,222 flow-through share units issued at a price of 45 cents per flow-through unit and 512,500 common share units at a price of 40 cents per common share unit, for aggregate gross proceeds of $484,999.90. The company raised total gross proceeds of $2,484,979 in the offering.
Each common share unit consists of one common share and one-half of one non-transferable share purchase warrant, with each such whole warrant entitling the holder thereof to acquire one common share at a price of 50 cents for a period of 24 months.
Each flow-through unit consists of one flow-through common share and one-half of one non-transferrable share purchase warrant, with each whole warrant entitling the holder thereof to acquire one non-flow-through common share at a price of 55 cents for a period of 24 months.
Certain directors and officers of the company, being Robert McLeod, Michael McPhie, Andrew Farncomb, David Parker and Susan Neale, participated in the offering by acquiring an aggregate of 284,722 flow-through and common units (or an aggregate of 427,083 shares, assuming exercise of their warrants) for an aggregate subscription of $114,999.90. The shares comprising such units (excluding shares issuable under the warrants) represent approximately 0.7 per cent of the company's currently issued and outstanding shares on a non-diluted basis (or approximately 1.0 per cent, assuming exercise of their warrants). Such participation is considered to be a related-party transaction as defined under Multilateral Instrument 61-101. Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of units issued to, nor the consideration paid by, such directors or officers will exceed 25 per cent of the company's market capitalization.
Finders' fees payable in connection with the offering consisted of a total of $18,900 and 42,000 finders' warrants.
Net proceeds from the offering will be used for continued exploration and development activities on the company's Red Mountain property located near Stewart, B.C., and for working capital purposes.
The company also announces that it has granted 150,000 stock options at a price of 30 cents to an officer of the company. The options vest immediately and are exercisable for a period of five years.
Exploration program in 2014
IDM has recently completed a surface diamond drilling program at the Red Mountain project. Assays are currently pending from 12 diamond drill holes on the property, including five holes targeting the new Uxlox and Wyy Lo'oop discoveries at the Cambria zone; two holes from the AV zone extension; three holes from the 141 zone; and two holes from the Marc zone extension. All assays are currently pending, with initial results expected within three weeks. Additionally, IDM will be announcing assays from regional rock and soil sampling, and from unsampled historic drill core. |
