International Tower Hill Receives Share Ownership Top-Up Notice from AngloGold Ashanti for 230,764 Shares
February 17 2011 - 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"), will exercise its right to
maintain a 11.5039% equity interest in the Company through the
purchase of 230,764 common shares. Since August 11, 2010,
AngloGold's equity interest has been diluted by virtue of the
Company's issuance of shares principally due to the exercise of
incentive stock options expiring in early 2011.
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 230,764 common shares at a price
of CAD$8.13 per share (reflecting the 5-day volume-weighted average
price of the Company's common shares on the TSX preceding February
16, 2011, less the maximum allowable discount of 15% as required by
the provisions of the "top-up" right) for gross proceeds of
CAD$1,875,419.
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/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 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 four 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
and general working capital.
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 controls a 100% interest in the
world-class Livengood Gold Project accessible by paved highway 70
miles north of Fairbanks, Alaska. The Company is focused on the
rapid advancement of the project into a compelling potential
development project in 2011 while it continues to expand its
current resource and explore a land package spanning 145 km2 for
new deposits.
On behalf of INTERNATIONAL TOWER HILL MINES LTD.
Jeffrey A. Pontius, 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 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.
NR11-03
Contacts: International Tower Hill Mines Ltd. Shirley Zhou
Vice-President - Corporate Communications 1-888-770-7488 (toll
free) or (604) 638-3247 (604) 408-7499 (FAX) szhou@ithmines.com
www.ithmines.com
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