IDM Mining Announces Non-Brokered Private Placement Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 1, 2017) -

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IDM Mining Ltd. (TSX VENTURE:IDM)(OTCQB:IDMMF) ("IDM" or the "Company") is pleased to announce a non-brokered private placement flow-through financing (the "Offering") to sell up to 32,258,065 flow-through common shares at a price of $0.155 per share for aggregate gross proceeds of up to $5.0 million. The proceeds from the Offering will be used for exploration, permitting, First Nations engagement and community relation work on the Company's Red Mountain Gold Project (the "Project"), located east of Stewart, BC.

"Proceeds from this financing will extend the current 23,000 meter underground and surface drilling program, targeting near-mine area with the objective of increasing reserves and resources, potentially extending mine life at the Red Mountain Property," said Rob McLeod, President and CEO of IDM Mining. "Our drilling to-date has received encouraging results, both up and down-dip from current reserves, and long strike to the north. This financing enables us to continue drilling late into the autumn of 2017."

The financing is scheduled to close in two tranches, one on or about Aug. 17, 2017, and the second on or about Sept. 10, 2017, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The total gross proceeds from the financing must be used to incur Canadian exploration expenditures as defined by the Income Tax Act (Canada) by Dec. 31, 2018.

The Company will pay a finder's fee on a portion of the Offering, comprised of a cash fee equal to 6% of the gross proceeds raised from the sale of flow-through shares and warrants equal to 6% of the number of certain flow-through shares. Each such finder warrant will entitle the holder to purchase one common share at a price of $0.23 for a period of twelve months following the applicable closing of the Offering.

Certain insiders of the Company may acquire shares in the Offering. Any such participation would be considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to or the consideration paid by such persons will exceed 25% of the Company's market capitalization.