IDM Mining Announces Results of Shareholders' Meeting and Investment by Lake Shore Gold
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 4, 2015) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
IDM Mining Ltd. (TSX:IDM) ("IDM" or the "Company") is pleased to announce results of the Company's general meeting ("Meeting") of shareholders held on July 28, 2015 and the issuance of securities to Lake Shore Gold Corp. ("Lake Shore") pursuant to the restructured agreement announced on June 16, 2015.
"We are pleased to have Lake Shore as a significant shareholder in IDM, and are grateful for a positive settlement of future liabilities related to legacy properties in Mexico," said Michael McPhie, Executive Chairman of IDM Mining. "Lake Shore's track record in operating a successful gold mine through challenging markets will benefit IDM as we advance the Red Mountain Gold Project through advanced engineering and the permitting process."
General Meeting
The Company reports that, at the Meeting, all resolutions presented in the management information circular dated June 18, 2015 were approved, which included (i) approving the increase in the non-brokered private placement of units of the Company (the "Offering") to raise aggregate gross proceeds of up to $2.5 million by the issuance of an additional 7,850,000 common shares; and (ii) the issuance of 7,500,000 common shares and 20,000,000 common share purchase warrants as full settlement for amounts due to Lake Shore pursuant to the amended Purchase and Sale Agreement with Lake Shore.
Private Placement
As previously announced (July 2 and 21, 2015) the Company has closed two tranches of the Offering for aggregate gross proceeds of approximately $1,360,000. Subject to approval of the Toronto Stock Exchange, the Company anticipates closing the final tranche in early August 2015, including the committed investment from Lake Shore (2.5 million common share units) and Delbrook Capital Advisors' remaining commitment (approximately 3.0 million flow through units), for additional gross proceeds of up to $1,140,000.
Issuance of Securities to Lake Shore
In June 2015, the Company and Lake Shore amended the terms of the Purchase and Sale Agreement to settle IDM's remaining payment obligation of $5.0 million. Pursuant to the amended agreement and in full settlement of the payment obligation, the Company has issued 7.5 million common shares and 20 million common share purchase warrants to Lake Shore. Each warrant entitles Lake Shore to acquire one common share of the Company at a price of $0.20 for a period of 60 months. The warrants are subject to an acceleration provision if the Company's shares trade at or above $0.40 per share for 20 consecutive trading days. The amendments to the agreement also include Lake Shore's commitment to subscribe for common share units in the Offering, as described above, and the right of Lake Shore to nominate one director to the IDM board of directors. For information on Lake Shore's shareholdings, please refer to the Company's information circular dated June 18, 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.
IDM announced positive results from a NI 43-101 PEA and revised Resource Estimate completed by JDS Energy & Mining Ltd. for Red Mountain (refer to IDM's news release dated July 23, 2014 and the technical report entitled "Red Mountain Gold Project" dated September 3, 2014 which is available 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.
The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Robert McLeod, P.Geo, President and CEO of IDM Mining Ltd. and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information contained within this release.
ABOUT IDM MINING LTD.
IDM Mining Ltd. is a mineral exploration company (TSX:IDM) based in Vancouver, BC, Canada. The Company's current exploration activities are focused on precious metals in British Columbia. 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
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, closing of the final tranche of the Offering and its timing, proposed exploration and development activities and their timing, resource estimates and potential mineralization, the PEA, including estimates of capital and sustaining costs, anticipated internal rates of return, mine production, estimated recoveries, mine life, estimated payback period and net present values, 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 approval, timing and success of future exploration and development activities, exploration and development risks, 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: required regulatory approval, permits and financing will be obtained; the Offering will be completed as planned; 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.
Contact
IDM Mining Ltd.
Robert McLeod
604-681-5672 direct or 604-617-0616 cell
rm@idmmining.com
www.IDMmining.com