International Tower Hill Mines (ITH) (TSE:ITH) (NYSE MKT:THM) Thursday reported its third quarter financial results and provided an update on its Livengood gold project in Alaska.
During the three and nine month periods ended September 30, the company said it advanced its Livengood project by focusing its efforts on an upcoming feasibility study - expected in the second quarter of 2013.
The company noted that its development team made "significant advancements" on project design, driven by an extensive metallurgical test program.
A large portion of the metallurgical testwork has been completed, with final results expected in the fourth quarter, ITH said, adding that the work will define the anticipated process flowsheet and recovery rates to be incorporated in the definitive feasibility study.
Additionally, the company closed a two-stage, non-brokered private placement financing for gross proceeds of approximately $29.6 million. The proceeds of the offering will be used to complete the feasibility study in the first half of 2013 as well as general corporate purposes, it said.
During the third quarter, on September 19, Donald C. Ewigleben was appointed president and CEO of the company.
ITH noted that Ewigleben has served as the chairman of the Board since November 2011 and was involved during the early stages of Livengood's exploration and development in the 1990's.
The company ended the period with $42.3 million of cash and cash equivalents, and said that it spent $36.3 million on exploration and evaluation assets and used $6.7 million for operating activities.
At the end of the third quarter, ITH had working capital of $34.8 million. The company expects to operate at a loss "for the foreseeable future", but believes its current cash position will be sufficient for it to complete non-discretionary activities at Livengood, as well as general and administrative costs through the 2012 and 2013 fiscal years.
ITH anticipates continuing its investigations, studies and drilling programs and anticipates spending approximately $60 million for the 2012 fiscal year ending December 31, in order to advance the Livengood project.
The company incurred a net loss of $11.1 million for the quarter, compared to a net loss of $8.3 million in the comparable year-ago period.
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