IDM Mining (IDM-T) Dec 17, '15 is pleased to announce that it has closed the $1 million private placement with Oban Mining (OBM-T)and has made the final pre-production option payment to Seabridge Gold Inc. (SEA-T) under the Company's option to acquire a 100% interest, subject to underlining royalties, in the Red Mountain Gold Project near Stewart, B.C.
"We are pleased to have Oban as a significant shareholder," commented Rob McLeod, President and CEO of IDM. "Oban is a dynamic mining company led by a highly respected team with expertise in geology, engineering, operations and the capital markets. Their investment in IDM is a testament to the potential of the Red Mountain Gold Project and the team that is advancing it."
Michael McPhie, Executive Chairman of IDM, further commented, "This investment enables us to make the final pre-production payment to Seabridge and allows us to focus further investments on engineering, permitting and economic studies. We believe that Oban's technical expertise and our strong shareholders, including Lakeshore Gold Corp. and Delbrook Capital Advisors Inc., will allow us to continue to build long-term shareholder value despite the current market environment."
The private placement with Oban consisted of 11,111,111 common shares at a price of $0.09 per common share for aggregate gross proceeds of $1.0 million. Proceeds from the private placement have been used to make the final pre-production option payment of $1 million, towards IDM option to earn a 100% interest the Red Mountain Gold Project. (See IDM Mining News Release, April 15, 2014).
Closing of the acquisition of the Yukon Properties, pursuant to the agreement with Oban announced on December 7, 2015, is anticipated to close mid January 2016.
Finder's fees payable to M Partners Inc. in connection with the private placement consisted of $50,000 and 555,555 finder's warrants.
Additionally, IDM expects to close shortly on a non-brokered private placement offering consisting of flow-through units and common units for aggregate gross proceeds of up to $2.2 million (see IDM news release dated December 9, 2015).
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 $40 million has been spent on the Project including a production sized underground ramp.
In July 2014, IDM announced positive results from a NI 43-101 PEA and revised Resource Estimate completed by JDS Energy & Mining Ltd. for the Red Mountain project (see IDM news release dated July 23, 2014). A technical report prepared following the guidelines of the Canadian Securities Administrators' NI 43-101, titled "Preliminary Economic Assessment Technical Report, Red Mountain Gold Project, Northwestern, BC, Canada", is filed on SEDAR and the Company's website.
At a 3.0 g/t Au cutoff, Measured and Indicated Resources from the Marc and AV Zones at Red Mountain are 1,454,300 tonnes averaging 8.15 g/t Au and 29.57 g/t Ag totaling 380,900 oz Au and 1,382,800 oz Ag. Inferred Resources from the Marc, AV and JW Zones are 332,900 tonnes averaging 7.69 g/t Au and 12.72 g/t Ag totaling 82,300 oz Au and 136,200 oz Ag. IDM will be updating the NI 43-101 Resource for Red Mountain in Q1 of 2016.
The Company recently entered into the BC and Canadian Environmental Assessment process for Red Mountain and intends to be in a position to make a final investment decision in early 2017.
QA/QC
Technical work at Red Mountain including rigorous Quality Control/Quality Assurance programs, are overseen by Rob McLeod, P.Geo, President and CEO of IDM Mining, and a Qualified Person as defined by NI 43-101. Mr. McLeod prepared and approved the technical information contained within this release.
ABOUT IDM MINING LTD.
IDM Mining Ltd. is a mineral exploration and development company 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 recently entered the BC and Canadian environmental assessment process. Further information can be found on the Company's website at www.IDMmining.com.
ON BEHALF OF THE BOARD of IDM Mining Ltd.
Robert McLeod, President, CEO and Director
IDM Mining Ltd.
Robert McLeod
604-681-5672 direct
604-617-0616 cell
rm@idmmining.com
www.IDMmining.com |
