IDM Mining Ltd.

IDM Mining Ltd.

December 17, 2015 09:00 ET

IDM Mining Announces Closing of the Private Placement With Oban Mining and Payment to Seabridge Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 17, 2015) - IDM Mining Ltd. (TSX:IDM) ("IDM" or the "Company") is pleased to announce that it has closed the $1 million private placement with Oban Mining Corporation (TSX:OBM) ("Oban") and has made the final pre-production option payment to Seabridge Gold Inc. (TSX:SEA) ("Seabridge") 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).


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.


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.


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


Robert McLeod, President, CEO and Director

Cautionary Note Regarding the PEA: The PEA is preliminary in nature and 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. Furthermore, there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Readers are encouraged to read the technical report.

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 proposed exploration and development activities and their timing, the completion of the transfer of the Yukon Properties, completion of the final pre-production payment to Seabridge, the Company's plans to update the resource estimate for the Red Mountain Project, opportunities to enhance the value of the Red Mountain Project, timing of making an investment decision on the Red Mountain Project, 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, 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 approvals, permits and financing 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.

Contact Information