North of 60 Mining News - The mining newspaper for Alaska and Canada's North

IDM Mining Ltd. March 7 announced it has closed a C$15.25 million private placement with Osisko Gold Royalties Ltd. This financing involved the issuance of 29.4 million common shares at C17 cents per share and 41 million flow-through shares at C25 cents per share.

As a result of the financing, Osisko now owns about 19.9 percent of the IDM shares on a non-diluted basis.

The roughly C$5 million raised from the sale of the regular shares will be primarily used for advancing the development of IDM's Red Mountain gold project in northern British Columbia and for general corporate and working capital purposes.

The C$10.25 million raised through the sale of flow-through shares will be used for requisite Canada exploration expenses.

Under Canada tax law, a mineral exploration company that does not generate revenue is able to transfer the income tax benefits generated from the exploration it carries out at qualified Canada projects to individual investors that purchase the flow-through shares.

IDM's Red Mountain project hosts 2.07 million metric tons of measured and indicated resource averaging 8.75 grams per metric ton (583,700 ounces) gold and 25 g/t (1.66 million oz) silver.

A feasibility study for developing a mine here is expected to be completed this spring.

-SHANE LASLEY