IDM MiningLtd. said April 7 that it is undertaking a private placement offlow-through units at 11 Canadian cents each to raise C$4 million and commonunits at 9 cents each to raise C$3.5 million, with the proceeds of bothearmarked to advance the Red Mountain gold project in British Columbia.
A portion of the offering will be brokered through a syndicateled by Red Cloud Klondike Strike Inc. and including Haywood Securities Inc. andMedalist Capital Ltd.
Each flow-through unit will consist of 1 flow-through commonshare and 0.5 warrant. Each warrant, which expires 24 months after the closingof the placement, can be exercised for 1 non-flow-through common share at 15cents per share.
Each common unit will consist of 1 common share and 0.5nontransferable share purchase warrant. Each warrant, which expires after 24months, can be exercised for 1 common share at 15 cents per share.
More specifically, proceeds will be used to fund a5,000-meter underground drill program to improve the gold resource at RedMountain. It will also be used to advance the project's permitting, fieldstudies and environmental assessment, with the goal of submitting a projectapplication report to secure project approval in 2017.
Proceeds are also earmarked to complete engineering, fieldstudies and a feasibility study on the project, and for general working capital.
These programs aim to bring IDM in a position to make afinal investment decision on Red Mountain in 2017.