VANCOUVER — IDM Mining (TSX: IDM; US-OTC: RVRCF) has taken a step toward production at its Red Mountain gold project – located 15 km northeast of Stewart, BC – after cleaning up its balance sheet and closing a private placement that will fund it through the permit process it hopes will end by late 2016.
IDM overcame a financial hurdle when it negotiated the payment of a legacy debt that has haunted its balance sheet for the past two years. The issue dates back to a 2012 option agreement with Lake Shore Gold (TSX: LSG; NYSE-MKT: LSG), when IDM was known as Revolution Resources.
The company optioned Lake Shore’s Mexican exploration portfolio and was on the hook for a series of balloon payments, despite shifting its focus to Red Mountain.
“This has been in plan since we initially restructured the company last year. The history is that there was a top-of-the-market option deal to acquire the Mexican assets that our current management team didn’t negotiate,” president and CEO Robert McLeod said during an interview.
Read the complete article at NorthernMiner.com/news/lake-shore-takes-stake-in-idm