BRITISH COLUMBIA – IDM Mining of Vancouver is raising $6.0 million through a non-brokered private placement for its Red Mountain gold project 15 km east of Stewart.
Development is proceeding at the Red Mountain gold project. (Credit: IDM Mining)
The company will issue approximately 38.7 million flow-through shares at a price of $0.155 per share. The proceeds will be used for exploration, permitting, First Nations engagement, and community relations work at Red Mountain.
IDM completed a feasibility study for Red Mountain earlier this year. The company proposes a primarily longhole, low cost, bulk mining operation with whole ore grinding and leaching. Estimated gold recoveries will be between 88.1% and 92.8%, and doré bars will be poured on site.
Preproduction capital spending will be $136 million to develop a mine with a six-year life. The project has proven and probable reserves of 2.0 million tonnes grading 7.53 g/t gold and containing 473,000 oz.
First gold could be produced by late 2018, if the environmental assessment is approved in the first half of next year as anticipated.
See the corporate presentation available at www.IDMmining.com.