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Wednesday, February 22, 2017 Derek Macpherson

Osisko Gold Royalties to Invest C$15.2 Million in IDM

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IDM Mining Ltd. (TSXV:IDM) announced a private placement with Osisko Gold Royalties Ltd. (TSX:OR, NYSE:OR) for C$15.248 million which should provide IDM the necessary funds to move its Red Mountain project to a production decision along with allowing for a significant 2017 exploration program. The financing was a combination of flow-through shares that are priced at a 61.3% premium to the prior day’s close (41 million shares at C$0.25 for gross proceeds of C$10.250 million) and common shares that are priced at a 9.7% premium to the prior day’s close (29.4 million shares at C$0.17 for gross proceeds of C$4.998 million). As a result of the transaction Osisko Gold Royalties would own ~19.9% of IDM on a non-diluted basis. In conjunction with the financing, Osisko will be granted certain preemptive rights in respect to the acquisition of royalties or streams from the Red Mountain project. The transaction is expected to close on March 1st. This should provide IDM the balance sheet flexibility to advance the Red Mountain project to a production decision and fund a significant exploration program in 2017. IDM trades at a discount to peers on a P/NAV basis (0.39x vs. peers at 0.56x) and on a per ounce basis (C$41/oz vs. peers at C$57/oz). We expect the pending feasibility study for Red Mountain, coupled with the project’s ongoing de-risking (engineering and permitting), should help close the valuation gap to peers. read more


Thursday, February 09, 2017 Derek Macpherson

IDM Adds Mining Experience to Its Board

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IDM Mining Ltd. (TSXV:IDM) announced the appointment of Duncan Middlemiss, P.Eng to its Board of Directors. Mr. Middlemiss brings significant mine development experience, which we view positively since IDM is advancing its flagship Red Mountain project in British Columbia towards a feasibility study (H1 2017) and final construction decision. Mr. Middlemiss is currently the President, CEO and a Director of Wesdome Gold Mines Ltd. (TSX:WDO). IDM trades at a discount to peers on a P/NAV basis (0.43x vs. peers at 0.59x) and on a per ounce basis (C$48/oz vs. peers at C$63/oz). We expect the pending feasibility study for Red Mountain, coupled with the project’s ongoing de-risking (engineering and permitting), should help close the valuation gap to peers. read more


Monday, January 23, 2017 Derek Macpherson

IDM's Resource Update Benefits Project

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IDM Mining Ltd. (TSXV:IDM) released an updated resource estimate for its flagship Red Mountain project which should be positive for project economics. The overall tonnage increased by 10%, gold content grew by 18% and silver content grew by 15% as grades increased (Figure 1). With the update, the overall resource grew by over 100k AuEq oz (all categories) and suggests that a longer mine life is likely with the feasibility study that is expected later in H1 2017. We view this resource update positively as the ounces added to the project’s economics. IDM trades at a discount to peers on a P/NAV basis (0.37x vs. peers at 0.54x) and on a per ounce basis (C$37/oz vs. peers at C$52/oz). We expect IDM’s share price performance in the near-term to be primarily driven by Red Mountain’s pending feasibility study (H1 2017).  read more


Thursday, January 19, 2017 Derek Macpherson

IDM Advances Yukon Asset Sale

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IDM Mining Ltd (TSXV:IDM) announced it is advancing the sale of its Yukon assets by entering into a definite agreement with StrikePoint Gold Inc (TSXV:SKP). The proposed consideration consists of a combination of C$150k in cash and 10.5 million StrikePoint shares (valued at C$0.385 each), implying at total value of ~C$4.2 million. Based on the current share structure of StrikePoint, post transaction IDM would own ~40% of StrikePoint’s outstanding shares through which IDM is likely to have exposure to any of StrikePoint’s exploration success on the Yukon properties. In addition, IDM holds right of first refusal on the disposition of these assets for two years from closing and StrikePoint is also required to complete C$1.5 million in exploration on the properties by year-end 2017. We view the transaction positively, as it allows IDM to surface value from this non-core asset and represents a premium to the ~C$650k (7.2 million shares at C$0.09) paid to acquire these assets. However, we expect IDM’s near-term share price performance to be primarily driven by the pending resource update and feasibility study for its flagship Red Mountain project.  read more


Wednesday, December 21, 2016 Derek Macpherson

IDM Surfaces Value from Non-Core Yukon Assets

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IDM Mining Ltd (TSXV:IDM) announced this morning that it has signed a non-binding LOI to sell its portfolio of non-core Yukon assets to StrikePoint Gold Inc (TSXV:SKP). The proposed consideration is a combination of C$150k in cash and 10 million StrikePoint shares (valued at C$0.385 each), implying at total value of C$4 million. Based on the current structure of StrikePoint, post transaction IDM would own ~28% of StrikePoint’s outstanding shares. We note that StrikePoint also must complete C$1.5 million in exploration on the properties by year-end 2017 and IDM holds right of first refusal on the disposition of these assets for two years from closing. We view the transaction positively, as it allows IDM to surface value from this non-core asset and represents a premium to the ~C$650k (7.2 million shares at C$0.09) paid to acquire these assets. We expect IDM’s near-term share price performance to be primarily driven by the pending resource update and feasibility study for its flagship Red Mountain project in BC. read more


Tuesday, December 13, 2016 Derek Macpherson

IDM Makes Progress on Red Mountain's FS

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IDM Mining Ltd (TSXV:IDM) provided an update on the ongoing feasibility study (FS) of its Red Mountain project in British Columbia. The feasibility study is expected to include an updated resource (released early 2017) based on the 2016 drill program. As well, the company plans to complete a metallurgy update, which we expect to improve overall recovery (in particular at the JW and AV zones), and optimize the process flow-sheet. The company expects to announce the results of the study later in H1 2017. On a NAVPS basis, IDM trades at a discount to peers at 0.36x (peers 0.46x), while on a per ounce basis it trades at a premium, C$57/oz (peers C$42/oz). We expect the pending resource update and feasibility study, coupled with ongoing project de-risking (engineering and permitting), should be positive catalysts for the stock.  read more


Tuesday, December 06, 2016 Derek Macpherson

IDM's Final Results Support Grades and Resource Potential

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IDM Mining Ltd (TSXV:IDM) released final results from its 2016 drill program at its Red Mountain project in British Columbia. Recent results were highlighted by infill hole U16-1214 at the AV zone that returned 6.20 g/t Au and 23.25 g/t Ag over 27m and step-out hole U16-1224 at the JW zone that returned 9.12 g/t Au and 27.87 g/t Ag over 18.22m. In our view, the 2016 near-mine exploration program at Red Mountain has expanded the current resource. We note that even a small resource (50-100k oz) increase would have a material impact on this project’s economics, because of its shorter mine-life (~5 years). We expect the pending resource update (early Q1 2017) and feasibility study (H1 2017), coupled with ongoing project de-risking (engineering and permitting), should be positive catalysts for the stock which trades at a slight discount to peers on a NAVPS basis.  read more


Tuesday, November 22, 2016 Derek Macpherson

IDM Intersects High Grade at the JW Zone

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IDM Mining Ltd (TSXV:IDM) announced results from additional 10 underground holes at its Red Mountain project in British Columbia. The results are primarily from infill holes drilled at the upper part of the JW zone and were highlighted by 18.70 g/t Au and 66.85 g/t Ag over 6.80m (U16-1201). In our view, the results continue to confirm both Red Mountain’s current resource potential and highlight the potential for resource growth. The 2016 drill program, both infill and step-out, is expected to be incorporated in the early 2017 resource update, ahead of the planned feasibility study (H1 2017). In our view, ongoing drill results and project de-risking are likely to be positive catalysts for the stock, which continues to trade at a discount to peers on a NAVPS basis.  read more


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