Midas Gold Enters LOI to Raise C$55.2 Million

Midas Gold Corp. (TSX:MAX,OTCQX:MDRPF) announced that it’s entered into a letter of intent (LOI) with Paulson & Co. Inc. under which it will raise C$55.2 million to move forward at its Idaho-based Stibnite gold project.
As quoted in the press release:

[Midas] announced that it has entered into a letter of intent with Paulson & Co. Inc., on behalf of the several investment funds and accounts managed by it (“Paulson”), pursuant to which Midas Gold will conduct an offering of Canadian dollar denominated 0.05% senior unsecured convertible notes (the “Notes”) to be issued by a wholly owned subsidiary (the “Issuer”) to Paulson on a private placement basis (the “Note Offering”). Concurrently, Midas Gold will complete an offering of Notes to certain of the Company’s existing shareholders (the “Existing Shareholder Offering” and, together with the Note Offering, the “Offering”) for total gross proceeds of C$55.2 million. The Notes will have a term of seven years and may be converted into common shares of Midas Gold at a price of C$0.3541 per share. The maximum gross proceeds of the Existing Shareholder Offering will be C$20.7 million, with the Note Offering to comprise the balance of the C$55.2 million to be raised.

Stephen Quin, president and CEO of Midas Gold, commented:

The Company believes the Stibnite Gold Project is at a critical juncture. With a long life project (as defined in the PFS) that includes three years of site clean-up and construction, 12 years of production (excluding resource upside), and culminating in the final restoration of the site, the clearest path to additional value creation is to see the Project advanced through environmental assessment and permitting and to complete a bankable feasibility study. Midas Gold carefully considered the structure and timing of this financing package and, though we do not take the potential share dilution lightly, we also realize that certainty of capital is essential before entering into the permitting process and we believe the Company’s value proposition and leverage to gold remain exceptionally high. We are pleased to welcome Paulson as a strategic investor, and wish to thank our existing shareholders for their continued support.

Click here to read the full Midas Gold Corp. (TSX:MAX,OTCQX:MDRPF) press release.