IDM Mining Ltd. closed a previously announced private placement, raising total proceeds of C$9 million, it said Oct. 4.
The financing was co-led by Paradigm Capital Inc. and Medalist Capital Ltd., and included the exercise of an overallotment option by the agents.
Earlier this month, the offering was upsized to C$7.5 million due to strong demand.
IDM issued 37,982,589 units at 17 cents apiece for C$6.5 million in proceeds, and 12,084,129 flow-through shares at 21 cents apiece for C$2.5 million in proceeds.
Each unit consists of 1 common share and 0.5 of a purchase warrant, with each warrant exercisable at 25 cents for a 24-month period from closing, subject to an acceleration clause. The flow-through shares have no warrants attached.
Proceeds are primarily earmarked for additional resource expansion drilling, exploration and permitting at the company's Red Mountain gold project in British Columbia, as well as the completion of a feasibility study on the project. Funds will also be used for general working capital.