/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, Oct. 23, 2018 /CNW/ - IDM Mining Ltd.
(TSX-V:IDM) (OTCQB:IDMMF) ("IDM" or the "Company") announces
that it has closed the first tranche of its previously announced
private placement raising gross proceeds of approximately
$1,921,010 and has increased the size
of the Offering to raise gross proceeds of up to $5.23 million. Also, the Company is pleased
to announced that it has appointed Maryse Bélanger and Jim Gowans as advisors to the Company.
"I am looking forward to working with the guidance and
experience of Ms. Bélanger and Mr. Gowans, two highly respected
executives in our industry with extensive experience in mine
construction and development," said Ryan Weymark, VP Project Development for IDM
Mining. "With the British Columbia Environmental
Assessment process complete and the federal process nearing
completion, the next steps in developing a high-grade,
bulk-mineable underground operation at Red Mountain are to update
the feasibility study and complete advanced engineering required
for Mines Act permitting."
PRIVATE PLACEMENT-CLOSING OF FIRST TRANCHE AND
UPSIZING
The Company has closed the first tranche of its previously
announced non-brokered private placement (the "Offering"),
comprised of 1,643,000 flow-through shares ("FT Shares") and
30,099,999 non-flow-through units ("Common Units) for gross
proceeds of approximately $1,921,010
and has increased the size of the Offering to raise gross proceeds
of up to $5.23 million. This
upsize is to potentially accommodate an investment by an
engineering service provider.
Following closing of the first tranche, existing shareholder
Ruffer LLP, on behalf of its clients, will have increased its
holdings from approximately 9% to 14% (12% on closing the full
amount of the Offering), in each case, on an undiluted
basis.
As previously announced, the Offering consists of a combination
FT Shares at a price of $0.07 per FT
Share and Common Units at a price of $0.06 per Common Unit.
Each Common Unit consists of one common share of the Company (a
"Common Share") and one-half of one non-transferable common share
purchase warrant, with each whole warrant entitling the holder
thereof to acquire one Common Share at a price of $0.085 per Common Share for a period of
twenty-four (24) months following closing of the
Offering.
In respect of this first tranche of the Offering, finder's fees
payable consist of a cash payment of $3,060 and 51,000 non-transferrable finders'
warrants ("Finders' Warrants"). Each Finders' Warrant
entitles the holder to purchase one common share at a price of
$0.085 for period of twelve months
following closing of the Offering.
The securities issued in the first tranche of the Offering are
subject to a four-month hold period that will expire on
February 23, 2019.
The net proceeds of the Offering will be applied to exploration,
completion of an updated feasibility study and development
activities on the Company's Red Mountain Gold Project (the
"Project" or "Red Mountain") located near Stewart, BC and for working capital
purposes.
APPOINTMENT OF MARYSE BELANGER AND JIM GOWANS
Ms. Bélanger and Mr. Gowans will assist and advise the Company
on financial, technical and project development matters.
Maryse Bélanger
Ms. Bélanger has over 30 years of experience with senior global
gold companies with strengths in studies, technical services and
operational excellence and efficiency. Ms. Belangér is currently
President, COO and a Director of Atlantic Gold Corporation,
positions she's held since November
2017 and before that was COO from July 2016. Prior to that, she was CEO and
Managing Director of Mirabela Nickel Ltd. where she was responsible
for the restructuring of that company's Santa Rita mine in Brazil during a period of extremely low metal
prices. From 2011 to 2014, Ms. Bélanger was a senior executive with
Goldcorp, ultimately as Senior Vice President Technical
Services.
Ms. Belangér currently serves on the board of directors for
Sherritt International Corporation, Sigma Lithium Resources
Corporation and Plateau Energy Metals Inc. Ms. Bélanger holds
a Bachelor of Science in Geology from Université du Québec
Chicoutimi and a graduate
certificate in Geostatistics and the ICD.D certification from the
Institute of Corporate Directors. She is fluent in English,
French, Spanish and Portuguese.
Jim Gowans
Mr. Gowans has more than 30 years of experience in exploration,
feasibility studies, construction and operations, including the Red
Dog and Polaris mines. He was formerly President and Chief
Executive Officer of Arizona Mining Inc, and Co-President & EVP
& COO of Barrick Gold.
Prior roles included Managing Director of Debswana Diamond Company
(Pty) Ltd., President and CEO of De Beers Canada Inc., COO &
SVP of PT Inco Indonesia tbk and EVP of Placer Dome Inc.
Mr. Gowans currently serves on the board of directors of New
Gold Inc., Detour Gold Corporation, Cameco Ltd. and Titan Mining
Corporation, as well as Gedex Technologies Inc., an innovative
geophysics systems company. Mr. Gowans is a Professional Engineer
and holds a Bachelor of Applied Science degree in mineral
engineering from the University of British Columbia and attended the Banff School
of Advanced Management.
ABOUT IDM MINING LTD.
IDM Mining Ltd. is an exploration and development company based
in Vancouver, BC, Canada focused on advancing the Red Mountain
Gold Project towards production. The 17,125 hectare Red
Mountain Gold Project is located in northwestern BC, 15 km
northeast of the mining town of Stewart. In 2018, IDM
announced a 20.7% increase in high-grade, near-surface measured and
indicated resources at Red Mountain. Located near a paved
highway and grid power, IDM envisions bulk underground mining
methods, with gold-silver doré produced on site. The Project
has recently been granted its Provincial Environmental Assessment
Certificate, with a Federal Environmental Assessment Decision
expected by January 2019.
Additional information, including the Company's NI 43-101
Technical Report for the Red Mountain Gold Project, are available
at www.idmmining.com and at www.sedar.com.
ON BEHALF OF THE BOARD
of IDM Mining Ltd.
"Robert McLeod"
President, CEO and Director
"Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release."
This press release does not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful, including in the
United States. The securities described herein have not been
and will not be registered under the United States Securities Act
of 1933, as amended (the "1933 Act") or any applicable state
securities laws and may not be offered or sold in the United States, or to, or for the account
or benefit of a U.S. person (as defined in Regulation S of the 1933
Act) unless registered or pursuant to an available exemption from
such registration requirements.
Forward-Looking Statements: Some statements in
this news release contain forward-looking information or
forward-looking statements for the purposes of applicable
securities laws. These statements include, among others,
statements with respect to the Offering and the use of proceeds
from the Offering, proposed exploration and development activities
and their timing, and other plans and objectives of IDM.
These statements address future events and conditions and, as such,
involve known and unknown risks, uncertainties and other factors,
which may cause the actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by the statements. Such
factors include, among others and in addition to those described
elsewhere in this release, receipt of regulatory approvals of the
Offering, inability to complete the financing on the proposed terms
or at all, delays in obtaining or inability to obtain required
government or other regulatory approvals, permits or financing, the
risk of unexpected variations in mineral resources, grade or
recovery rates, of failure of plant, equipment or processes to
operate as anticipated, of accidents, labor disputes, and
unanticipated delays in completing other development activities,
the risk that estimated costs will be higher than anticipated and
the risk that the proposed mine plan and recoveries will not be
achieved, equipment breakdowns and bad weather, the timing and
success of future exploration and development activities,
exploration and development risks, mineral resources are not as
estimated, title matters, third party consents, operating hazards,
metal prices, political and economic factors, competitive factors
and general economic conditions. In making the
forward-looking statements, the Company has applied several
material assumptions including, but not limited to, the assumptions
that: the Offering will proceed and be completed as planned;
required regulatory approval will be obtained; the proposed
exploration and development will proceed as planned; with respect
to mineral resource estimates, the key assumptions and
parameters on which such estimates are based; that the
proposed mine plan and recoveries will be achieved, that capital
costs and sustaining costs will be as estimated, and that no
unforeseen accident, fire, ground instability, flooding, labor
disruption, equipment failure, metallurgical, environmental or
other events that could delay or increase the cost of development
will occur, and market fundamentals will result in sustained metals
and minerals prices. The Company expressly disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise except as otherwise required by applicable securities
legislation.
SOURCE IDM Mining Ltd.
