IDM Mining Ltd. (formerly Revolution Resources Corp.) (TSX:IDM) is pleased to announce that it has closed its previously announced brokered private placement financing for gross proceeds of $2,776,140. The financing consisted of 2,098,000 flow-through units issued at a price of $0.31 per Flow-Through Unit, as well as 8,857,334 common units issued at a price of $0.24 per Common Unit. Each Unit will consist of one common share and one-half of one common share purchase warrant with each Warrant exercisable for a period of 15 months at an exercise price of $0.36 per share.
Concurrently, the Company has also closed a non-brokered financing through the issuance of 240,645 Flow-Through Units and 1,859,174 Common Units for additional gross proceeds of $520,801.
In the event that the Company’s common shares trade at a closing price greater than $0.55 per share for a period of 20 consecutive trading days at any time following the date that is four months after the date hereof, the Company may accelerate the expiry date of the Warrants by giving notice via press release to the holders thereof. In such case, the Warrants will expire on the 30th day after the date on which notice is given by the Company.
Net proceeds of the financing will be used to fund the initial $1 million cash payment to Seabridge Gold Inc. in connection with the recently announced option agreement to acquire a 100% interest in the high-grade Red Mountain Gold Project near Stewart, B.C. exploration and development activities at Red Mountain, and for working capital purposes. The Company also issued 5,268,000 common shares to Seabridge pursuant to the terms of the Red Mountain option agreement.
IDM will begin mobilizing exploration crews to Red Mountain shortly. The Company is targeting surface drilling on multiple prospects, as well as underground delineation drilling at the AV and JW zones. Environmental baseline work is ongoing, as well as community and First Nation consultation.
Haywood Securities Inc. acted as agent in connection with the brokered portion of the financing.
The Company also issued 250,000 common shares in settlement of outstanding debts in the amount of $60,000 owing to an arm’s length party.
About IDM Mining Ltd.
IDM Mining Ltd. is mineral exploration company based in Vancouver, BC, Canada. The Company’s current exploration and development activities are focused on precious metals in North America.
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