VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 3, 2014) -
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") announces a non-brokered private placement offering (the "Offering") to sell flow-through share units ("Flow-Through Units") at a price of $0.45 per Flow-Through Unit and common share units ("Common Share Units") at a price of $0.40 per Common Share Unit, for aggregate gross proceeds of up to $2.0 million.
Each Common Share Unit shall consist 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 $0.50 per Common Share for a period of twenty-four (24) months following the closing of the Offering.
Each Flow-Through Unit shall consist of one flow-through common share and one-half of one non-transferrable share purchase warrant, with each whole warrant entitling the holder thereof to acquire one non flow-through Common Share in the capital of the Company at a price of $0.55 per Common Share for a period of twenty-four (24) months following the closing of the Offering.
The warrants issued in the Offering will not be listed for trading.
A maximum of 5.0 million units are issuable under the Offering, which assumes that the maximum gross proceeds are raised through the issuance of Common Share Units only.
The Company will pay to certain finders a cash fee equal to 7% of the gross proceeds raised from the sale of the Flow-Through Units and the Common Share Units to purchasers introduced to the Company by the finder (collectively, the "Found Units") and will issue finder warrants equal to 7% of the Found Units sold pursuant to the Offering, with each finder warrant entitling the holder to purchase one Common Share at a price of $0.55 for a period of twelve (12) months following the closing of the Offering.
The Company intends to use the net proceeds of the Offering for continued exploration and development activities on its Red Mountain Property located near Stewart, BC and for working capital purposes.
The Offering is subject to receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange.
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 have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any applicable securities laws of any state of the United States 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 under the 1933 Act) unless registered or pursuant to an available exemption from such registration requirements.
ABOUT IDM MINING LTD.
IDM Mining Ltd. is mineral exploration company (TSX:IDM) based in Vancouver, BC, Canada. The Company's current exploration activities are focused on precious metals in British Columbia and the Carolina Slate Belt, USA. 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 Offering and the use of proceeds from the Offering. 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, completion of the proposed Offering, delay in obtaining or inability to obtain required regulatory approval of the Offering, exploration and development risks, 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 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 as planned; that proceeds from the Offering will be spent as allocated; that required regulatory approvals will be obtained; the proposed exploration and development will proceed as planned; and market fundamentals will result in sustained metals and minerals prices and any additional financing needed will be available on reasonable terms. 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.