VANCOUVER, BRITISH COLUMBIA–(Marketwired – Feb. 22, 2017) – IDM Mining Ltd. (TSX VENTURE:IDM) (“IDM” or the “Company“) is pleased to announce a private placement with Osisko Gold Royalties Ltd (TSX:OR)(NYSE:OR)(“Osisko“) for total proceeds of $15,248,000.

Osisko has agreed to purchase 29,400,000 common shares at a price of $0.17 per share and 41,000,000 million flow-through common shares at a price of $0.25 per share (the “Shares“).

“We are pleased to welcome Osisko Gold Royalties as a significant shareholder,” said Robert McLeod, President and CEO of IDM. “The use of proceeds will be for resource expansion and exploration drilling at our high-grade Red Mountain Gold Project, as well as ongoing engineering work to support our feasibility study and permitting efforts.”

The offering will be conducted on a private placement basis. The proceeds from the offering will be primarily used for advancement of development of the Red Mountain Gold Project (“Project“) and for general corporate and working capital purposes. Gross proceeds from flow-through Shares will be used to incur “Canadian exploration expenses” that will also qualify as “flow-through mining expenditures”.

Closing is expected to occur on or about March 1, 2017 and is subject to receipt of all necessary regulatory approvals including approval of the TSX Venture Exchange. The Shares will be subject to a four month hold period in accordance with Canadian securities laws.

Upon closing of the offering, Osisko will hold 19.9% of the IDM shares on a non-diluted basis.

In connection with the Private Placement, IDM will grant to Osisko certain pre-emptive rights in respect to purchases or grants of royalties or streams from the Project.

ABOUT IDM MINING LTD.

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 is advancing through the BC and Canadian environmental assessment processes.

ON BEHALF OF THE BOARD of IDM Mining Ltd.

Robert McLeod, President, CEO and Director

“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

Forward-Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the offering and the use of proceeds from the offering, proposed exploration and development activities and their timing, and other plans and objectives of IDM. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others and in addition to those described elsewhere in this release, receipt of regulatory approvals of the offering, inability to complete the offering on the proposed terms or at all, delays in obtaining or inability to obtain required government or other regulatory approvals, permits or financing, unanticipated delays in completing development activities, the risk that estimated costs will be higher than anticipated and the risk that the proposed mine plan and recoveries will not be achieved, equipment breakdowns and bad weather, the timing and success of future exploration and development activities, exploration and development risks, mineral resources are not as estimated, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors and general economic conditions. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: the offering will proceed and be completed as planned; required regulatory approvals will be obtained; the proposed exploration and development will proceed as planned; that capital costs and sustaining costs will be as estimated, and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur, and market fundamentals will result in sustained metals and minerals prices. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

Investor Relations:
Shobana Thaya
416-807-1009
[email protected]

Alex Horsley
604 618-3058
[email protected]