IDM Mining Completes the Acquisition of Red Mountain Claims from Seabridge Gold
May 26, 2017, Vancouver, BC – IDM Mining Ltd. (TSX.V:IDM) (OTCQB:IDMMF) (“IDM” or the “Company”) is pleased to announce that it has completed the acquisition of the minerals claims and certain other related assets comprising the Red Mountain Project (“Red Mountain” or the “Project”) from Seabridge Gold Inc. (“Seabridge”). IDM acquired the 100% interest, subject to certain underlying agreements and royalties, pursuant to the Option Agreement entered into in April 2014. The Red Mountain Project covers an area of 17,125 hectares and is located 15km northeast of the town of Stewart, BC.
“Completing the acquisition of title for a 100% interest in the Red Mountain Project is another significant step for IDM Mining,” said Rob McLeod, President and CEO of IDM Mining. “We are grateful to have worked with Seabridge as the property vendor, and are excited for further milestones as we advance the Project towards a production decision for a high-grade gold, bulk mining underground operation.”
In accordance with the Option Agreement, the Company replaced Seabridge’s $1.0 million reclamation security held by the Province of British Columbia, IDM is obligated to make a $1.5 million cash payment to Seabridge upon the commencement of commercial production at Red Mountain and Seabridge retains the right to acquire 10% of the annual gold production from the Project at a cost of US$1,000 per ounce up to a maximum of 500,000 ounces produced (50,000 ounces to Seabridge). Alternatively, at Seabridge's sole option, Seabridge may elect to receive a one-time cash payment of $4 million at the commencement of production in exchange for the gold metal stream interest.
About Red Mountain
The Red Mountain Gold Project is located in northwestern BC, 15 km northeast of the Town of Stewart. IDM will release shortly the results of a Feasibility Study for a high-grade, underground gold mine, which envisions primarily bulk underground mining methods and the production of gold doré on site. The Project is advancing through the provincial and federal environmental assessment processes, with comprehensive, thorough, and ongoing consultation with Nisga’a Nation.
ABOUT IDM MINING LTD.
IDM Mining Ltd. is a mineral exploration and development company based in Vancouver, BC, Canada. The Company's current exploration and development activities are focused on precious metals in British Columbia and Yukon, with a primary focus on the high grade underground Red Mountain gold project which has entered the BC and Canadian environmental assessment process.
ON BEHALF OF THE BOARD
of IDM Mining Ltd.
President, CEO and Director
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Forward-Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the proposed exploration and development activities, completion of the feasibility study and their timing, resource estimates and potential mineralization. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others and in addition to those described elsewhere in this release, timing and success of future exploration and development activities, exploration and development risks, delays in obtaining or inability to obtain required government or other regulatory approvals, permits or financing, the risk of unexpected variations in mineral resources, grade or recovery rates, of failure of plant, equipment or processes to operate as anticipated, of accidents, labor disputes, and unanticipated delays in completing other development activities, the risk that estimated costs will be higher than anticipated and the risk that the proposed mine plan and recoveries will not be achieved, equipment breakdowns and bad weather, the timing and success of future exploration and development activities, exploration and development risks, mineral resources are not as estimated, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors and general economic conditions. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: required regulatory approval, permits and financing will be obtained; the proposed exploration and development will proceed as planned; with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based; that the proposed mine plan and recoveries will be achieved, that capital costs and sustaining costs will be as estimated, and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur, and market fundamentals will result in sustained metals and minerals prices. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.