IDM Mining Completes Acquisition of Seabridge Gold’s Red Mountain Project, B.C.
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IDM Mining Ltd. has completed the acquisition of the minerals claims and certain other related assets comprising the Red Mountain Project from Seabridge Gold Inc. IDM acquired the 100 percent interest, subject to certain underlying agreements and royalties, pursuant to the option agreement entered into in April 2014. The Red Mountain Project covers an area of 17,125 hectares and is located 15km northeast of the town of Stewart, BC.
“Completing the acquisition of title for a 100 percent interest in the Red Mountain Project is another significant step for IDM Mining. We are grateful to have worked with Seabridge as the property vendor, and are excited for further milestones as we advance the Project towards a production decision for a high-grade gold, bulk mining underground operation,” said Rob McLeod, president and CEO of IDM Mining.
In accordance with the option agreement, the company replaced Seabridge’s $1.0 million reclamation security held by the Province of British Columbia, IDM is obligated to make a $1.5 million cash payment to Seabridge upon the commencement of commercial production at Red Mountain and Seabridge retains the right to acquire 10 percent of the annual gold production from the project at a cost of US$1,000 per ounce up to a maximum of 500,000 ounces produced (50,000 ounces to Seabridge). Alternatively, at Seabridge’s sole option, Seabridge may elect to receive a one-time cash payment of $4 million at the commencement of production in exchange for the gold metal stream interest.
The Red Mountain Gold Project is located in northwestern BC, 15 km northeast of the Town of Stewart. IDM will release shortly the results of a feasibility study for a high-grade, underground gold mine, which envisions primarily bulk underground mining methods and the production of gold doré on site. The Project is advancing through the provincial and federal environmental assessment processes, with comprehensive, thorough, and ongoing consultation with Nisga’a Nation.
About IDM Mining
IDM Mining Ltd. is a mineral exploration and development company based in Vancouver, BC, Canada. The company’s current exploration and development activities are focused on precious metals in British Columbia and Yukon, with a primary focus on the high grade underground Red Mountain gold project which has entered the BC and Canadian environmental assessment process.
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