International Tower Hill Receives Share Ownership Top-up Notice from AngloGold Ashanti
February 11 2010 - 9:00AM
Marketwired
International Tower Hill Mines Ltd. ("ITH" or the "Company") -
(TSX: ITH)(NYSE Amex: THM)(FRANKFURT: IW9) is pleased to announce
that AngloGold Ashanti (U.S.A.) Exploration Inc., a subsidiary of
AngloGold Ashanti Limited ("AngloGold"), has exercised its right to
maintain its 13.2907% equity interest in the Company. AngloGold's
equity interest had been diluted by virtue of the Company's
issuance of shares since May 19, 2009, principally due to the
exercise of incentive stock options, broker options and in
connection with the purchase the interest of Redstar Gold Corp. in
the Company's North Bullfrog project.
As a consequence of AngloGold's election to exercise its
"top-up" right, the Company will sell to AngloGold, on a private
placement basis, an aggregate of 67,965 common shares at a price of
CAD 5.38 per share (reflecting the 5 day volume-weighted average
price of the Company's common shares on the TSX preceding February
10, 2010 less the maximum allowable discount (15%), as required by
the provisions of the "top-up" right) for gross proceeds of CAD
365,899.54. The private placement is subject to execution of formal
documentation and the acceptance for filing thereof by the TSX and
NYSE-Amex on behalf of the Company. The common shares issued in the
private placement will be subject to a hold period in Canada
expiring 4 months plus one day after closing. The net proceeds from
the private placement are anticipated to be used by the Company for
continued work on the Livengood Gold project in Alaska, further
work on its Alaska and Nevada mineral properties and general
working capital.
The "top-up" provision, contained in the June 30, 2006 purchase
agreement among AngloGold, the Company and Talon Gold Alaska, Inc.
pursuant to which the Company acquired AngloGold's Alaskan assets
(including the Company's flagship Livengood property), gives
AngloGold the right, twice a year, to maintain its then current
equity ownership percentage in the Company on an ongoing basis
thereby avoiding dilution as a result of the issuance of shares by
the Company in connection with property payments or warrant or
option exercises. AngloGold also has a separate right to
participate in any equity financings by the Company up to its then
pre-financing percentage equity interest.
The common shares have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, (the "1933 Act"), or
any state securities laws, and are being issued pursuant to
exemptions from registration requirements.
About International Tower Hill Mines Ltd.
International Tower Hill Mines Ltd. is a resource exploration
company, focused in Alaska and Nevada, which controls a number of
exploration projects representing a spectrum of early stage to the
advanced multimillion ounce gold discovery at Livengood. ITH is
committed to building shareholder value through new discoveries
while maintaining a majority interest in its key holdings, thereby
giving its shareholders the maximum value for their investment.
On behalf of International Tower Hill Mines Ltd.
Jeffrey A. Pontius, President and Chief Executive Officer
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act and Section 27E of
the Exchange Act. All statements, other than statements of
historical fact, included herein including, without limitation,
statements regarding the anticipated completion of the private
placement to AngloGold Ashanti (U.S.A.) Exploration Inc. and the
proposed use of the proceeds of the financing by the Company, 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 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 timing and pricing of the
private placement. Other risks and uncertainties are disclosed in
the Company's annual information form filed with Canadian
securities commission and its annual report on Form 40-F filed with
the United States Securities and Exchange Commission, 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
technical reports filed with respect to the Company's mineral
properties.
NR10-04
Contacts: International Tower Hill Mines Ltd. Quentin Mai
Vice-President - Corporate Communications 1-888-770-7488 (toll
free) or (604) 683-6332 (604) 408-7499 (FAX)
qmai@internationaltowerhill.com www.internationaltowerhill.com
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