International Tower Hill Mines (TSE:ITH)(NYSE MKT:THM)(AMEX:THM) said Thursday it raised the amount of its non-brokered private placement financing announced earlier this month by more than $4 million.
The first stage of the two trance
offering will now consist of up to 9.46 million common shares of the
company at a price of C$2.60 each for increased gross proceeds of up to
Previously, the first stage of the financing was set at up to 7.69 million common shares for up to C$20 million in proceed.
This portion of the financing is anticipated to close in early August.
second stage of the offering, which remains the same, will consist of a
number of common shares that, when valued at a price equal to a 10 per
cent discount from the five day volume weighted average price as at
September 10, will equal up to C$5 million.
This has been alloted a maximum of $3.0 million shares, the miner said.
company also said that despite the second portion being priced 60 days
after the announcement of the financing, the single investor in the
latter stage has committed to purchasing C$5 million in the first stage
of the offering as well as to close the second part of the transaction.
The second tranche is anticipated to close before September 21.
Tower Hill said it expects that certain insiders of the company will
participate in the offering, which remains subject to regulatory
The company plans on using the new funds to complete
its bankable feasibility study at the Livengood gold project in Alaska,
as well as for general working capital purposes.
month, the gold miner announced that Jeffrey A. Pontius will assume the
role of interim chief executive officer until a new candidate is
selected by the company’s board of directors.
Pontius is currently a director of the mining company, and was the founder and former CEO of International Tower Hill Mines from August 2006 to May 2011.
interim CEO, Pontius will direct the company through the final stages
of optimization at the Livengood project, and will oversee corporate
International Tower Hill Mines
controls a 100 per cent interest in the Livengood gold project located
north of Fairbanks, Alaska, that has a resource size of 16.5 million
ounces in the measured and indicated categories plus 4.1 million ounces
in the inferred category.
In June, the company said it decided
that the "most efficient and cost-effective" path to permitting the
project is to incorporate results from current engineering and
metallurgical test work directly into a definitive feasibility study -
which the company expects to complete in the first half of next year.
gold miner also implemented a cost reduction program, which assessed
"financial de-risking options", it said, including possible joint
venture opportunities, for the development of the Livengood property.
a result, the company decided to postpone much of its district-wide
exploration drilling program started in May, and cut a portion of its
condemnation drill program.
The mineral explorer will focus on
completing all the necessary field work and drilling to support the
feasibility study as well as the environmental work needed to keep the
permitting schedule on track.