IDM Mining Closes Second Tranche of Equity Financing to Fund Exploration at the Red Mountain Gold Project, B.C.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 10, 2014) -

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IDM Mining Ltd. (TSX:IDM) ("IDM" or the "Company") is pleased to announce that it has closed the second tranche of its non-brokered private placement financing announced on September 3 and 23, 2014 (the "Offering"). The second and final tranche of the Offering consisted of 622,222 flow-through share units ("Flow-Through Units") issued at a price of $0.45 per Flow-Through Unit and 512,500 common share units ("Common Share Units") at a price of $0.40 per Common Share Unit, for aggregate gross proceeds of $484,999.90. The Company raised total gross proceeds of $2,484,979 in the Offering.

Each Common Share Unit consists of one common share and one-half of one non-transferable share purchase warrant, with each such whole warrant entitling the holder thereof to acquire one common share at a price of $0.50 for a period of twenty-four (24) months.

Each Flow-Through Unit consists of one flow-through common share and one-half of one non-transferrable share purchase warrant, with each whole warrant entitling the holder thereof to acquire one non flow-through common share at a price of $0.55 for a period of twenty-four (24) months.

Certain directors and officers of the Company, being Robert McLeod, Michael McPhie, Andrew Farncomb, David Parker and Susan Neale participated in the Offering by acquiring an aggregate of 284,722 Flow Through and Common Units (or an aggregate of 427,083 shares, assuming exercise of their warrants) for an aggregate subscription of $114,999.90. The shares comprising such units (excluding shares issuable under the warrants) represent approximately 0.7% of the Company's currently issued and outstanding shares on a non-diluted basis (or approximately 1.0%, assuming exercise of their warrants). Such participation is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI-61-101"). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of units issued to, nor the consideration paid by, such directors or officers will exceed 25% of the Company's market capitalization.