IDM Mining (IDM-V) Oct 4th 2016 is pleased to announce that it has closed its previously announced private placement co-led by Paradigm Capital Inc. and Medalist Capital Ltd., and including Haywood Securities Inc. and Red Cloud Klondike Strike Inc. (together with the Co-Lead Agents the "Agents") for CAD$8,994,707, which includes the exercise by the Agents of their option to sell an additional 20% of the Offering. The Offering was upsized on September 12, 2016 due to strong demand.
The Company issued 37,982,589 units (the "Units") at $0.17 each for gross proceeds of $6,457,040 and 12,084,129 flow-through shares (the "Flow-Through Shares") at $0.21 each for gross proceeds of $2,537,667. Each Unit is comprised of one common share (a "Common Share") of the Company and one half of one common share purchase warrant, each whole warrant (a "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.
The proceeds from the Offering will 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 the Flow-Through Shares will be used to incur "Canadian exploration expenses" that will also qualify as "flow-through mining expenditures".
The securities issued in the Offering are subject to a four month hold period that will expire on February 5, 2017.
Certain insiders of the Company participated in the private placement, therefore the Offering is considered a related party transaction and is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 in reliance on the exemptions set forth in sections 5.5(a) and (b) and 5.7(1)(a) of MI 61-101. The Company did not file a material change report more than 21 days before the expected closing of the Offering as the details of the Offering and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.
The Company paid to the Agents a total of $385,745 and 2,138,739 non-transferrable compensation options. Each compensation option entitles the holder to purchase one Common Share at a price of $0.25 for a period of twelve months.
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.
ON BEHALF OF THE BOARD of IDM Mining Ltd.
Robert McLeod, President, CEO and Director
IDM Mining Ltd.
Robert McLeod
President, CEO and Director
604-681-5672 (direct) or 604-617-0616 (cell)
rm@idmmining.com
www.IDMmining.com
IDM Mining Ltd.
Shobana Thaya
Investors Relations
416-807-1009
st@idmmining.com
IDM Mining Ltd.
Alex Horsley
Investors Relations
604-618-3058
ah@idmmining.com |
