International Tower Hill Mines Ltd. (TSX: ITH / NYSEMKT: THM) has closed the previously announced non-brokered private placement financing (the "Offering") of 45,833,334 common shares at a price of US$0.48 per share for gross proceeds of US$22.0 million.
"It is significant to have such high quality support from Paulson & Co. Inc. as they increase their interest in the Company and to have Tocqueville Asset Management, L. P. and AngloGold Ashanti (U.S.A.) Exploration Inc. participate in this private placement to maintain their pro-rata share. With this support, the improved results of the Pre-Feasibility Study released on October 24, 2016 and the key project fundamentals of a large resource base, stable jurisdiction, and leverage to gold price, we look forward to continuing to advance the Livengood Gold Project," said Tom Irwin, CEO.
The Company intends to use the net proceeds of the private placement for full satisfaction of the final payment due in January 2017 with respect to acquisition of certain mining claims and related rights in the vicinity of the Livengood Gold Project in Alaska (the "Project") (determined to be approximately USD $14.7 million as calculated per the purchase agreement through December 12, 2016), continuation of optimization studies to further improve and de-risk the Project, required environmental baseline studies, and for general working capital purposes.
In connection with the Offering, the Company has appointed Marcelo Kim to the ITH board of directors, where he will serve as Chairman. Mr. Kim is a Partner at Paulson & Co. Inc., where he oversees global natural resource investments. He received his BA in Economics from Yale University and currently also sits on the board of directors of Midas Gold Corporation. Commencing from the next annual general meeting of the Company's shareholders, Paulson & Co. Inc. will have the right to nominate Mr. Kim and one other individual to stand for election to the board of directors.
Marcelo Kim, incoming Chairman for ITH said, "We are excited to continue our partnership with ITH, owner of one of the largest gold reserves in North America not owned by a major company. In addition to its low strip ratio, minimal infrastructure requirements, and excellent jurisdiction, there are a number of opportunities that could further improve the economics for the Livengood project. Going forward, we will work to optimize both the capital and operating expenses of what we believe one day will become one of North America's most profitable gold mines."
Steve Lang, who has served as the Board Chairman since January 2014, has been appointed as the lead independent director for the Company.
Mr. Lang said "We appreciate the strong signal of support from our major shareholders. On behalf of the entire board, we would like to welcome Mr. Kim to the board."
About International Tower Hill Mines
International Tower Hill Mines Ltd. controls a 100% interest of the Livengood Gold Project, located along the paved Elliott Highway, 70 miles north of Fairbanks, Alaska.
Source: International Tower Hill Mines
