IDM Mining Files Project Description Report for Red Mountain Gold Project and Closes Final Tranche of Non-Brokered Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 13, 2015) -
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IDM Mining Ltd. (TSX:IDM) ("IDM" or the "Company") is pleased to announce that it has submitted the Project Description report for Red Mountain Gold Project to the British Columbia Environmental Assessment Agency ("BCEAO") and the Canadian Environmental Assessment Agency ("CEAA") and has closed the final tranche of its non-brokered private placement previously announced (May 19, 2015 and June 16, 2015) (the "Offering") for gross proceeds of $671,078.
Project Permitting
IDM has submitted a Project Description report (the "Project Description") for the Red Mountain Gold Project (the "Project") to the BCEAO and CEAA. The Project Description was reviewed in advance by First Nations governments and officially commences the environment assessment ("EA") process for a proposed 1,000 tonne per day underground gold mine at the Project, located 15 km northeast of Stewart BC. The issuance of a Section 10 Order under the Environment Assessment Act (BC) ("EAA"), which is expected in the coming weeks, will formally launch the Project into the British Columbia environmental review process.
The Company's environmental baseline crews are progressing with the final year's field work, including: surface and groundwater hydrology, archeological assessments, geohazard, fisheries and wildlife studies. Additionally, First Nation and community engagement as well as project engineering studies are well underway in conjunction with the EA process. Also, the Company anticipates updating the Project's NI 43-101 resource estimate in the near term to include additional mineralized zones.
"We are very pleased to be advancing the Red Mountain Project in the next step of the EA approval process," said Robert McLeod, CEO of IDM Mining. "The Project Description Report provides a concise overview of our proposed plans for the development of the project and allows us to meaningfully engage with government, the Nisga'a Nation and other communities in the region. Our vision for a proposed, high-grade gold mine with potential low operating costs and capex within a daily commute of my hometown of Stewart, would have a significant, positive impact on northwestern British Columbia."
Private Placement
The closing of the final tranche of the Offering consisted of 2,500,000 common share units ("Common Share Units") at a price of $0.10 per Common Share Unit and 3,007,700 flow through share units ("Flow-Through Units") issued at a price of $0.14 per Flow-Through Unit, for aggregate gross proceeds of $671,078.
Each Common Share Unit consists of one common share of the Company (a "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 $0.15 for a period of twenty-four (24) months. Each Flow-Through Unit consists of one flow-through common share and one-half of one non-transferable share purchase warrant, with each whole warrant entitling the holder thereof to acquire one non flow-through Common Share at a price of $0.18 for a period of twenty-four (24) months.
No finders' fees were paid in connection with the final tranche of the Offering
Net proceeds from the Offering will be used for continued permitting, engineering and development activities on its Red Mountain Property, located near Stewart BC and for working capital purposes.
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 gold and silver deposits and exploration prospects 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.
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 proposed exploration and development activities and their timing, resource estimates and potential mineralization, timing of the Section 10 Order, the Company's plans to update the resource estimate for the Project, the anticipated costs and impact of the Red Mountain Project, 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, timing of regulatory review and 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 in a timely manner; 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
President, CEO and Director
604-681-5672 direct / 604-617-0616 cell
rm@idmmining.com
www.IDMmining.com