IDM Mining closes purchase of Red Mountain project from Seabridge
Canada-based exploration company IDM Mining has completed the acquisition of the Red Mountain project from Seabridge Gold.
The company acquired the 100% interest in minerals claims and certain other related assets comprising the project, subject to certain underlying agreements and royalties, under an April 2014 option agreement.
Covering an area of 17,125ha, the project is located in north-western British Columbia (BC), 15km north-east of the town of Stewart.
IDM Mining president and CEO Rob McLeod said: "Completing the acquisition of title for a 100% 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."
Under the option agreement, IDM replaced Seabridge’s $1m reclamation security held by the province of BC, and will pay $1.5m in cash to Seabridge once commercial production at Red Mountain begins.
Meanwhile, Seabridge retains the right to acquire 10% of the annual gold production from the project at a cost of $1,000 per ounce up to a maximum of 500,000oz produced.
Seabridge also has the option to receive a one-time cash payment of $4m at the commencement of production in exchange for the gold metal stream interest.
IDM noted that the project is advancing through the provincial and federal environmental assessment processes.