VANCOUVER, Dec. 28, 2016 /PRNewswire/ - International
Tower Hill Mines Ltd. (TSX: ITH, NYSE-MKT: THM) ("ITH" or the
"Company") is pleased to announce that it 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."
All common shares issued in the Offering are subject to a hold
period in Canada of four months
from the closing of the Offering. All common shares issued in
the United States will be subject
to resale restrictions under U.S. federal and state securities
laws. The common shares to be issued in the Offering have not
been and will not be registered under the U.S. Securities Act of
1933, as amended (the "1933 Act") or any applicable securities laws
of any state of the United States
and may not be offered or sold in the
United States or to, or for the account or benefit of, U.S.
persons (as defined in Regulation S under the 1933 Act) or persons
in the United States absent
registration or an applicable exemption from such registration
requirements. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy any of the
common shares to be issued in the Offering, nor shall there be any
offer or sale of the common shares to be issued in the Offering in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
About International Tower Hill Mines Ltd.
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.
On behalf of
International Tower Hill Mines Ltd.
(signed) Thomas E.
Irwin
Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable Canadian and US
securities legislation. All statements, other than statements
of historical fact, included herein, including statements with
respect to the proposed use of the proceeds of the Offering by the
Company, the ability of the Company to carry out and complete
optimization studies with respect to the Livengood Gold Project,
the ability of the Company to advance the Livengood Gold Project,
the potential development of any mine at Livengood, business and
financing plans and business trends are forward-looking
statements. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking
statements are typically identified by words such as: believe,
expect, anticipate, intend, estimate, postulate, proposed, planned,
potential and similar expressions, or are those, which, by their
nature, refer to future events. The Company cautions
investors that any forward-looking statements by the Company are
not guarantees of future results or performance, and that actual
results may differ materially from those in forward-looking
statements as a result of various factors, including, but not
limited to, risks associated with the outcome of the expected
remedial de-listing review by the TSX, the use of proceeds from the
Offering, the potential inability of the Company to raise the
necessary capital or to be fully able to implement its business
strategies, and other risks and uncertainties disclosed in the
Company's annual report on Form 10-K and other reports filed with
the United States Securities and Exchange Commission (the "SEC"),
and certain securities commissions in Canada and other information released by the
Company and filed with the appropriate regulatory agencies.
All of the Company's Canadian public disclosure filings may be
accessed via www.sedar.com and its United
States public disclosure filings may be accessed via
www.sec.gov, and readers are urged to review these materials,
including the latest technical report filed with respect to the
Company's Livengood Gold Project.
This news release is not, and is not to be construed in any way
as, an offer to buy or sell securities in the United States or Canada.
SOURCE International Tower Hill Mines Ltd.