IDM raises funds to acquire Red Mountain
Last updated 12/27/2015 at Noon
IDM Mining Ltd. Dec. 17 reported clsoing a C$1 million private placement with Oban Mining Corp. This investment provides IDM with funds to pay Seabridge Gold Inc. a final pre-production option payment to acquire full ownership interest, subject to underlining royalties, in the Red Mountain gold project near Stewart, B. C. "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," according to IDM President and CEO Rob McLeod.
The private placement with Oban consisted of 11,111,111 common shares at a price of C9 cents per common share.
IDM anticipates the closing of a deal to buy a portfolio of 54 properties from Oban in mid-January.
The company is also finalizing a non-brokered private placement of up to C$2.2 million.
IDM intends to use the proceeds for continued permitting, engineering and development activities at Red Mountain, the portfolio of newly acquired properties and for working capital purposes.