International Tower Hill To Close CAD $24.6 Million First Tranche of its Non-Brokered Private Placement
August 03 2012 - 9:30AM
Marketwired
International Tower Hill Mines Ltd. (TSX:ITH)(NYSE MKT:THM)(NYSE
Amex:THM)(FRANKFURT:IW9) ("ITH" or the "Company") is pleased to
announce that it will close the first tranche of its previously
announced up to CAD 29.6 million non-brokered private placement
financing (the "Offering") today.
The first tranche of the Offering consists of 9,458,308 common
shares of the Company at a price of CAD 2.60 per common share for
gross proceeds of CAD 24.6 million. The participants in the first
tranche of the Offering include Paulson & Co., Tocqueville
Asset Management, LP, AngloGold Ashanti (USA) Exploration Inc., ITH
management and insiders as well as other institutional funds.
The second stage of the Offering will involve the issuance of up
to CAD 5 million of common shares, at a price per share equal to a
10% discount from the five day volume weighted average price for
the common shares as at September 10, 2012, subject to a maximum
issuance of 3,000,000 shares. The single placee in the second stage
is purchasing CAD 5 million of common shares in the first stage of
the Offering and has committed to close the second stage portion of
the Offering. Closing of the second stage is anticipated on or
before September 21, 2012. The Company will pay a 4% cash finder's
fee in connection with the issuance of up to CAD 10 million of
shares to this investor.
All common shares issued in the Offering will be subject to a
hold period in Canada of four months from the closing of the first
or second stage of the Offering, as applicable. All common shares
issued in the United States will be subject to resale restrictions
under U.S. federal and state securities laws. Completion of the
second stage of the Offering is subject to the Company obtaining
all necessary regulatory approvals, including acceptance for filing
by the Toronto Stock Exchange.
The Company intends to use the net proceeds of the private
placement for the completion of its bankable Feasibility Study and
continued project advancement at the Livengood Gold project in
Alaska as well as for general working capital purposes.
The common shares issued and 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 in
the world-class Livengood Gold Project accessible by paved highway
70 miles north of Fairbanks, Alaska.
On behalf of International Tower Hill Mines Ltd.
Jeffrey A. Pontius, Interim 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 U.S.
securities legislation. All statements, other than statements of
historical fact, included herein, including, without limitation,
statements regarding the anticipated completion of the second stage
of the Offering and the proposed use of the proceeds of the
Offering by the Company, the size and characteristics of, or the
discovery and delineation of, mineral deposits, resources or
reserves, the potential for the expansion of the estimated
resources at the Livengood property, the identification of
additional deposits on the Company's Livengood property, the
preparation or completion of a feasibility study, the optimization
of mine or gold recovery plans, the permitting of a mine at the
Livengood project, the potential for a production decision to be
made, the potential commencement of any development of a mine at
Livengood following a production decision, the Company's business
strategies, and the Company's other business and financing plans
and business trends, are forward-looking statements. Information
concerning mineral resource estimates and the preliminary economic
analysis thereof also may be deemed to be forward-looking
statements in that it reflects a prediction of the mineralization
that would be encountered, and the results of mining it, 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, 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 timing and
pricing of the second stage of the Offering, completion of the
second stage of the Offering, regulatory approval/acceptance of the
second stage of the Offering, the use of proceeds from the Offering
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 as 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
Livengood Project.
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.
NR12-21
Contacts: International Tower Hill Mines Ltd. Michelle Stachnik
Manager - Investor Relations 720-881-7646 Ext 203 or Toll-Free:
1-855-208-4642mstachnik@ithmines.com www.ithmines.com
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