International Tower Hill Mines Ltd. ("ITH" or the "Company") (TSX:
ITH)(NYSE Amex: THM)(FRANKFURT: IW9) is pleased to announce that it
has signed a letter of intent to enter into a joint venture with
American Mining Corporation ("AMC"), a private Nevada corporation,
on ITH's high grade Terra Gold Project in Alaska. Pursuant to the
LOI, an Alaskan subsidiary of AMC ("Subco") and Raven Gold Alaska
Inc. ("Raven"), a subsidiary of ITH, will form a joint venture (the
"JV") with the aim of developing the Terra Project to production.
It is anticipated that AMC, as operator, will commence a project
development program in June 2010.
Terra Project - Background
The Terra Gold Project is located in the Hartman Mining District
of Western Alaska and hosts a current 43-101 compliant inferred
resource of 428,000 tonnes at a grade of 12.2 g/t gold (168,000
contained ounces) and a grade of 23.1 g/t silver (318,000 contained
ounces), at a cutoff grade of 5 g/t gold, in a vein system which
remains open (see NR 08-04).
The Terra Project consists of 235 State of Alaska unpatented
lode mining claims currently held 100% by the Company plus an
additional 5 unpatented lode mining claims held under lease
(subject to a 3% to 4% NSR royalty to the lessor, dependent upon
the gold price). The property is centered on an 8 kilometre long
trend of high-grade vein occurrences which have returned numerous
surface rock samples and drill intersection in excess of 50 g/t
gold. The bulk of the Company's past drilling has focused on only a
400 metre long section of one of the vein systems (Ben's Vein)
discovered to date. This drilling has outlined the resource noted
above, which is over an average width of 2.3 metres, utilizing 20
HQ diamond holes.
AMC Earn-in and Joint Venture Structure
The initial interests of Subco and Raven in the JV will be 51%
and 49% respectively. Raven's initial contribution to the JV will
be its interest in the Terra Project, including all related data
and property facilities. Subco's initial contribution to the JV
will be funding for the JV totalling USD 6,000,000 over three years
(USD 1,000,000 in 2010). Of these expenditures, USD 100,000 will be
paid to the Company in each of the first and second years to
partially reimburse the Company for the cost of constructing the
existing camp facility at Terra. As consideration for the Company
causing Raven to enter into the JV, AMC will pay the Company USD
300,000, and issue 750,000 common shares of AMC, over the same
three-year period (USD 50,000 and 250,000 shares in 2010). If Subco
fails to make its full initial contribution, or AMC fails to make
all required payments and share issuances to the Company, over such
three-year period, then the JV will terminate and Subco will not
retain any residual interest in the Terra project.
In addition, the JV has granted Raven a sliding scale NSR
royalty of between 0.5% and 5% (depending upon the gold price) on
all precious metal production from the property and a 1% NSR
royalty on all base metal production. The royalty to Raven is in
addition to the current royalty payable to the underlying
lessor.
Upon having completed its initial contribution, Subco will have
the option to increase its JV interest by 29% (to 80% total) by
providing a subsequent contribution of an additional USD 3,050,000
in funding in the fourth year. In addition, AMC will be required to
pay the Company an additional USD 150,000 and issue an additional
150,000 common shares. Should Raven's interest be diluted below 10%
as a consequence of it not funding its proportionate share of JV
expenditures following AMC's having completed its initial
contribution (and subsequent contribution, if applicable), Raven's
JV interest will be converted to an additional 1% property wide NSR
royalty on all metals produced, for an aggregate NSR royalty to
Raven of 1.5% to 6% (depending upon the gold price) on precious
metals and 2% on base metals).
Formation of the JV is subject to the settlement and execution
of a formal agreement and the completion by AMC of due diligence on
the Terra project, both to be completed on or before May 19, 2010
(subject to extension by agreement).
Jeff Pontius, the President and CEO of ITH, stated, "The joint
venture with AMC will significantly benefit ITH shareholders by
partnering with an experienced and highly capable underground
development group such as AMC. This joint venture, along with our
recently announced Chisna joint venture, continues to position the
Company's non-Livengood assets as strategic building blocks for our
Raven Gold initiative, in which we plan to build a company with
significant exposure to partner funded, non-operator, gold-silver
production via royalty and/or carried interest agreements."
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
Cautionary Note Regarding Forward-Looking Statements
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 content, commencement and cost
of exploration programs, anticipated exploration program results,
the discovery and delineation of mineral
deposits/resources/reserves, the potential for achieving any
production at the Terra project, business and financing plans and
business trends, are forward-looking statements. Information
concerning mineral resource estimates also may be deemed to be
forward-looking statements in that it reflects a prediction of the
mineralization that would be encountered if a mineral deposit were
developed and mined. 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, variations in the nature, quality and quantity of
any mineral deposits that may be located, variations in the market
price of any mineral products the Company and AMC may produce or
plan to produce, the inability of the Company or AMC to obtain any
necessary permits, consents or authorizations required for its
activities, the inability of the Company or AMC to produce minerals
from its properties successfully or profitably, to continue its
projected growth, to raise the necessary capital or to be fully
able to implement their respective business strategies, the
inability of the Company or AMC to settle definitive agreements,
the inability of AMC to raise the necessary funding to meet its
initial and secondary contribution requirements, and other risks
and uncertainties disclosed in the Company's Annual Information
Form filed with certain securities commissions in Canada and the
Company's annual report on Form 40-F filed with the United States
Securities and Exchange Commission (the "SEC"), 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.
Cautionary Note Regarding References to Resources and
Reserves
National Instrument 43 101 - Standards of Disclosure for Mineral
Projects ("NI 43-101") is a rule developed by the Canadian
Securities Administrators which establishes standards for all
public disclosure an issuer makes of scientific and technical
information concerning mineral projects. Unless otherwise
indicated, all resource estimates contained in or incorporated by
reference in this press release have been prepared in accordance
with NI 43-101 and the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum (the "CIM") Standards on
Mineral Resource and Mineral Reserves, adopted by the CIM Council
on November 14, 2004 (the "CIM Standards") as they may be amended
from time to time by the CIM.
United States shareholders are cautioned that the requirements
and terminology of NI 43-101 and the CIM Standards differ
significantly from the requirements and terminology of the SEC set
forth Industry Guide 7. Accordingly, the Company's disclosures
regarding mineralization may not be comparable to similar
information disclosed by companies subject to the SEC's Industry
Guide 7. Without limiting the foregoing, while the terms "mineral
resources", "inferred mineral resources" and "indicated mineral
resources" are recognized and required by NI 43-101 and the CIM
Standards, they are not recognized by the SEC and are not permitted
to be used in documents filed with the SEC by companies subject to
Industry Guide 7. Mineral resources which are not mineral reserves
do not have demonstrated economic viability, and United States
shareholders are cautioned not to assume that all or any part of a
mineral resource will ever be converted into reserves. Further,
inferred resources have a great amount of uncertainty as to their
existence and as to whether they can be mined legally or
economically. It cannot be assumed that all or any part of the
inferred resources will ever be upgraded to a higher resource
category. In addition, the NI 43-101 and CIM Standards definition
of a "reserve" differs from the definition adopted by the SEC in
Industry Guide 7. In the United States, a mineral reserve is
defined as a part of a mineral deposit which could be economically
and legally extracted or produced at the time the mineral reserve
determination is made.
This press release is not, and is not to be construed in any way
as, an offer to buy or sell securities in the United States.
NR10-05
Contacts: International Tower Hill Mines Ltd. Quentin Mai
Vice-President - Corporate Communications 1-888-770-7488 or (toll
free) or (604)683-6332 (604) 408-7499 (FAX)
qmai@internationaltowerhill.com www.internationaltowerhill.com
International Tower Hill... (TSX:ITH)
Historical Stock Chart
From May 2024 to Jun 2024
International Tower Hill... (TSX:ITH)
Historical Stock Chart
From Jun 2023 to Jun 2024