International Tower Hill Mines (TSE:ITH)(NYSE MKT:THM)(AMEX:THM) said Thursday it raised the amount of its non-brokered private placement financing announced earlier this month by more than $4 million.
The first stage of the two trance offering will now consist of up to 9.46 million common shares of the company at a price of C$2.60 each for increased gross proceeds of up to C$24.6 million.
Previously, the first stage of the financing was set at up to 7.69 million common shares for up to C$20 million in proceed.
This portion of the financing is anticipated to close in early August.
The second stage of the offering, which remains the same, will consist of a number of common shares that, when valued at a price equal to a 10 per cent discount from the five day volume weighted average price as at September 10, will equal up to C$5 million.
This has been alloted a maximum of $3.0 million shares, the miner said.
The company also said that despite the second portion being priced 60 days after the announcement of the financing, the single investor in the latter stage has committed to purchasing C$5 million in the first stage of the offering as well as to close the second part of the transaction.
The second tranche is anticipated to close before September 21.
International Tower Hill said it expects that certain insiders of the company will participate in the offering, which remains subject to regulatory approvals.
The company plans on using the new funds to complete its bankable feasibility study at the Livengood gold project in Alaska, as well as for general working capital purposes.
Late last month, the gold miner announced that Jeffrey A. Pontius will assume the role of interim chief executive officer until a new candidate is selected by the company's board of directors.
Pontius is currently a director of the mining company, and was the founder and former CEO of International Tower Hill Mines from August 2006 to May 2011.
As interim CEO, Pontius will direct the company through the final stages of optimization at the Livengood project, and will oversee corporate development activities.
International Tower Hill Mines controls a 100 per cent interest in the Livengood gold project located north of Fairbanks, Alaska, that has a resource size of 16.5 million ounces in the measured and indicated categories plus 4.1 million ounces in the inferred category.
In June, the company said it decided that the "most efficient and cost-effective" path to permitting the project is to incorporate results from current engineering and metallurgical test work directly into a definitive feasibility study - which the company expects to complete in the first half of next year.
The gold miner also implemented a cost reduction program, which assessed "financial de-risking options", it said, including possible joint venture opportunities, for the development of the Livengood property.
As a result, the company decided to postpone much of its district-wide exploration drilling program started in May, and cut a portion of its condemnation drill program.
The mineral explorer will focus on completing all the necessary field work and drilling to support the feasibility study as well as the environmental work needed to keep the permitting schedule on track.