/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, Nov. 20, 2018 /CNW/ - IDM Mining Ltd.
(TSX-V:IDM) (OTCQB:IDMMF) ("IDM" or the "Company") announces
that it has closed the second tranche of its previously
announced private placement (the "Offering") raising gross proceeds
of approximately $2.45 million, with
total gross proceeds of $4.37
million.
The second tranche consisted of 12,431,242 flow-through shares
("FT Shares") at price of $0.07 per
FT Share and 26,449,671 non-flow-through units ("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.
Osisko Gold Royalties Ltd ("Osisko") participated in the
Offering by purchasing 16,666,668 Common Units for gross proceeds
of $1.0 million. Osisko holds an
approximate 18.2% interest in the Company after giving effect to
the Offering.
In respect of this second tranche of the Offering, finder's fees
payable consist of a cash payment of $49,700 and 667,142 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 second tranche of the Offering are
subject to a four-month hold period that will expire on
March 21, 2019.
The net proceeds of the Offering will be applied to exploration
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.
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.