Midas Gold Corp (OTMKTS:MDRPF) which is in the process of developing gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho, is a Canadian company we haven’t yet covered on Street Register.
We are taking notice of it today on the heels of some very encouraging news, in the form of a large investment from a much bigger, more established player in the gold sector.
Midas Gold Corp (OTMKTS:MDRPF) just announced that it has entered into an agreement with Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) whereby Barrick will purchase 46,551,731 common shares of Midas Gold in a non-brokered private placement at a price of $1.06 (CAD) per share for gross proceeds of US$38,065,907. The Placement will result in Barrick owning 19.9% of the issued and outstanding shares in Midas Gold on a post-transaction basis. Barrick’s investment supports Midas Gold’s continued efforts to permit the Stibnite Gold Project, so that we can build and operate a world class mining operation that addresses legacy environmental impacts and generate economic benefits to the local community.
“Midas Gold is in the midst of advancing the Stibnite Gold Project through completion of a feasibility study and permitting for site restoration and redevelopment,” said Stephen Quin, President & CEO of Midas Gold. “With our detailed plan for site restoration and protection of the environment, a large, long-life and low-cost operation, and a comprehensive proposal for the closure and reclamation of the site, Midas Gold is positioned to complete the critical milestones of feasibility study and permitting. Barrick shares Midas Gold’s vision for the restoration of the site and focus on community engagement. We believe Barrick’s extensive expertise and its core values, focused on environmental sustainability, make us natural partners.”
“Midas Gold’s Stibnite Gold Project in Idaho offers a compelling investment proposition, with low geopolitical risk, potential for production of over 300,000 ounces of gold per year at competitive operating costs, and exploration upside,” said Barrick President Kelvin Dushnisky. “We are also impressed with the emphasis that Midas Gold has placed on building partnerships with local communities and share their strong commitment to environmental stewardship. We look forward to working with the Midas Gold team to explore opportunities to enhance the value of the project for all partners.”
Midas Gold will use the proceeds from the Placement to advance its Stibnite Gold Project through to completion of a feasibility study and permitting of the Project for redevelopment and restoration.
During the past five years, Midas Gold has conducted extensive, multi-year environmental baseline programs to determine and define existing environmental conditions at this brownfields site, while reaching out to communities of interest for their views and perspectives regarding a future for the Stibnite Gold Project site and the local area. Midas Gold has focused on the remediation and repair of the historical disturbance at the site during the construction and operating periods, incorporating concurrent reclamation and minimizing new disturbance.
With the funds from this private placement with Barrick, we will be eager to see how it can help Midas move forward with developing its gold/mineral properties, hopefully with the end result of actually pulling materials from the Earth. . We’ll be sure to continue looking out for key events. We’ll stay up on any further developments with MDRPF and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free small cap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in MDRPF stock, short or long.