Anglo solidifies position in International Tower Hill

International Tower Hill Mines (ITH-V) got a boost from one of its more substantial investors when AngloGold Ashanti decided to maintain its 13.3% equity interest in the company.

AngloGold’s stake in Tower Hill was diluted by the company’s equity issue at the beginning of the year which came with warrants. Dilution was triggered when 7.7 million warrants were exercised in May.

To get back up to the 13%, Tower Hill is selling AngloGold 1.2 million common shares, through a private placement, at a price of $2.68 per share.

In Toronto on July 10 the company’s shares were off 3% or 10¢ at $3.05 on 133,000 shares traded. Its shares have traded between

Tower Hill says the $2.68 price reflects its July 9 closing price of $3.15 less a 15% discount that is required by Anglo’s “top-up” rights.

The “top-up” provision gives AngloGold the right, twice a year, to maintain its stake he on an ongoing basis.

The issue will net Tower Hill $3.2 million which will go towards its Livengood Gold project in Alaska as well as towards other projects in Alaska and Nevada and general working capital.