International Tower Hill Mines Acquires Mining Claims Near Livengood Project, Alaska
December 14 2011 - 9:00AM
Marketwired
International Tower Hill Mines Ltd. ("ITH" or the "Company") -
(TSX:ITH)(NYSE Amex:THM)(FRANKFURT:IW9) announces that its
wholly-owned subsidiary, Tower Hill Mines, Inc., has completed
transactions to acquire certain mining claims and related rights
(the "Assets") in the vicinity of the Company's Livengood Project
located near Fairbanks, Alaska. The Assets, which were purchased
for aggregate consideration of US $24.5 million in cash (the
"Acquisitions"), relate to land that was previously vacant or was
used for placer gold mining. The Acquisitions enable the Company to
pursue additional site facility locations and to investigate other
land use opportunities including the potential for placer gold
extraction in the near-term.
The Acquisitions were completed pursuant to a purchase agreement
dated December 13, 2011 with various individual vendors pursuant to
which the Company acquired certain Assets for consideration of
approximately US $13.5 million plus an additional contingent
payment based on the five-year average gold price ("Average Gold
Price") from the date of the Acquisitions, which contingent payment
will equal US $23,148 for every dollar that the Average Gold Price
exceeds US $720 per troy ounce. If the Average Gold Price is less
than US $720, there will be no additional contingent payment.
Effective December 13, 2011, the Company has also exercised its
option to purchase certain mining claims currently leased by the
Company for consideration of approximately US $11 million.
The consideration for the Acquisitions was funded by the Company
through cash on hand. Following completion of the Acquisitions, the
Company has sufficient working capital to meet its budget
requirements through calendar year 2012.
"The acquisition of additional land surrounding our Money Knob
gold deposit affords us much greater flexibility for selecting
future site facility locations as well as other land use
opportunities that may create significant shareholder value,"
stated Jim Komadina, Chief Executive Officer of ITH. "Given the
robust gold price environment for the foreseeable future, we are
actively looking at any and all opportunities to ensure the
successful development of the Livengood Gold Project into one of
North America's newest - and largest - gold mines."
About International Tower Hill Mines Ltd.
International Tower Hill Mines Ltd. controls a 100% interest in
the world-class Livengood Gold Project accessible by paved highway
70 miles north of Fairbanks, Alaska. In 2011/12 ITH is focused on
the rapid advancement of the Livengood project into a compelling
potential development scenario while it continues to expand its
current resource and explore its 145 km2 district for new
deposits.
On behalf of International Tower Hill Mines Ltd.
James J. Komadina, 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, without limitation,
statements regarding the selection of future site facility
locations, statements regarding possible future land use
opportunities creating significant shareholder value, the
sufficiency of working capital, the potential for any placer gold
production from the acquired claims, the potential for a production
decision to be made in respect of the Livengood Gold Project, the
potential for the development of a mine, and any production, at the
Livengood Gold Project, business and financing plans and business
trends, are forward-looking statements. Although the Company
believes that such statements are reasonable based on management's
current expectations in respect of the Assets and the Livengood
Gold Project exploration activities, 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
may produce or plan to produce, the Company's inability to obtain
any necessary permits, consents or authorizations required for its
activities, the Company's inability 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 its business strategies, 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 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.
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.
NR11-20
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.comwww.ithmines.com
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