Int'l Tower investor AngloGold exercises top-up right
International Tower Hill Mines Ltd (C:ITH)
Shares Issued 60,334,558
Last Close 2/10/2010 $6.34
Thursday February 11 2010 - News Release
Mr. Jeffrey Pontius reports
INTERNATIONAL TOWER HILL RECEIVES SHARE OWNERSHIP TOP-UP NOTICE FROM ANGLOGOLD ASHANTI
AngloGold Ashanti (U.S.A.) Exploration Inc., a subsidiary of AngloGold Ashanti Limited, has exercised its right to maintain its 13.2907-per-cent equity interest in International Tower Hill Mines Ltd. AngloGold's equity interest had been diluted by virtue of the company's issuance of shares since May 19, 2009, principally due to the exercise of incentive stock options, broker options and in connection with the purchase the interest of Redstar Gold Corp. in the company's North Bullfrog project.
As a consequence of AngloGold's election to exercise its top-up right, the company will sell to AngloGold, on a private placement basis, a total of 67,965 common shares at a price of 5.38 cents per share (reflecting the five-day volume-weighted average price of the company's common shares on the Toronto Stock Exchange preceding Feb. 10, 2010, less the maximum allowable discount (15 per cent), as required by the provisions of the top-up right) for gross proceeds of $365,899.54. The private placement is subject to execution of formal documentation and the acceptance for filing thereof by the TSX and NYSE-Amex on behalf of the company. The common shares issued in the private placement will be subject to a hold period in Canada expiring four months plus one day after closing. The net proceeds from the private placement are anticipated to be used by the company for continued work on the Livengood gold project in Alaska, further work on its Alaska and Nevada mineral properties, and general working capital.
The top-up provision, contained in the June 30, 2006, purchase agreement among AngloGold, the company and Talon Gold Alaska, Inc. pursuant to which the company acquired AngloGold's Alaskan assets (including the company's flagship Livengood property), gives AngloGold the right, twice a year, to maintain its then-current equity ownership percentage in the company on a continuing basis thereby avoiding dilution as a result of the issuance of shares by the company in connection with property payments or warrant or option exercises. AngloGold also has a separate right to participate in any equity financings by the company up to its then-prefinancing-percentage equity interest.
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