International Tower Hill Mines Ltd. said March 14 that it completed a US$12 million nonbrokered private placement, issuing 24 million common shares at 50 U.S. cents apiece.
The Electrum Group LLC's investment fund, Electrum Strategic Opportunities Fund II LP, participated in the placement and became a new institutional shareholder after acquiring stock equivalent to a 10.7% stake in the company. The remaining placement shares were acquired by Paulson & Co. Inc., raising its International Tower Hill stakes to 32%.
Proceeds from the financing will be used to further improve and de-risk the Livengood gold project in Alaska, for environmental baseline studies and for general working capital.
International Tower Hill's board approved a C$5.1 million budget this year and a reduction in the company's corporate overhead costs, including a 50% cut in the CEO's salary, reductions in board members' cash compensation and expense, and job cuts. These cost savings are estimated to bring the company's general and administrative costs within the range of C$2.5 million per year.
Furthermore, the company added Stuart Harshaw to its board, effective April 1, and plans to nominate CEO Karl Hanneman for election as a director.
