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Wednesday, 19 September 2012
International Tower Hill closes second tranche of C$29.6 mln private placement financing
International Tower Hill Mines (TSE:ITH)(NYSE MKT:THM)(AMEX:THM) says it has closed the second tranche of its C$29.6 million non-brokered private placement financing.
The second tranche of the offering consisted of roughly 1.93 million common shares at a price of C$2.59 each, representing a 10 per cent discount from the five-day volume weighted average price of the shares as at September 10.
This part of the placement raised gross proceeds of C$5 million.
The company plans to use the new funds to complete its bankable feasibility study at its Livengood gold project in Alaska and for general working capital purposes.
Last month, International Tower Hill said it received assay results for 45 drill holes at its Livengood gold project, with four holes returning multi-gram gold intersections “well outboard” of the main deposit.
The company said that the results indicated that the Livengood district scale gold system, located 70 kilometres from Fairbanks, Alaska, has “significant exploration potential”.
Highlights from the most recent results included hole MK-12-281, which intersected 2.76 metres at 2.75 grams per tonne (g/t) gold, including 1.53 metres at 4.09 g/t gold; hole MK-12-285, which intersected 2.01 metres at 3.47 g/t gold, including 6.61 metres at 0.64 g/t gold; and hole MK-12-288, which returned 3.05 metres at 2.48 g/t gold.
“These most recent drill results from a non-exploration directed drill program continue to show the robust nature of the Livengood gold system and potential for both new bulk tonnage and high-grade discoveries, said International Tower Hill's interim CEO Jeff Pontius, at the time.
At a resource size of 16.5 million ounces in the measured and indicated categories, plus 4.1 million ounces in the inferred category, the Livengood project ranks as one of the largest gold deposits discovered globally in 20 years.
In June, the company 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.
The 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.