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Midas Gold Corp. (TSX:MAX) announced that they have entered into a US$15.0 million transaction with Franco-Nevada Corporation (TSX:FNV) through which the Midas Group has agreed to sell certain rights to a royalty on future gold production from the Golden Meadows Project in Valley County, Idaho.
As quoted in the press release:
Midas Gold Corp. (TSX:MAX) announced that they have entered into a US$15.0 million transaction with Franco-Nevada Corporation (TSX:FNV) through which the Midas Group has agreed to sell certain rights to a royalty on future gold production from the Golden Meadows Project in Valley County, Idaho.
As quoted in the press release:
The subsidiaries of Midas Gold that hold the mineral title to the Golden Meadows Project (the “Vendor Group”) have entered into the Agreement with a subsidiary of Franco-Nevada (the “Payee”) whereby the Vendor Group has granted the Payee a perpetual 1.7% net smelter returns (“NSR”) royalty on any future gold production from the Golden Meadows Property, subject to the normal terms and conditions for such a royalty, in exchange for the sum of US$14.65 million. Importantly, the royalty excludes antimony, silver and other valuable by-products that may be produced from the Golden Meadows Property, if and when development proceeds.
Midas Gold’s President and CEO, Stephen Quin, said:
We appreciate Franco-Nevada’s endorsement of the merits of the Golden Meadows Project and its potential to be a significant producer of gold and other metals. Midas Gold intends to use the proceeds of the transactions to fund on-going mineral resource evaluation, metallurgical, engineering design, and environmental baseline data collection and evaluation at the Golden Meadows Project with a view to completing a prefeasibility study on the Golden Meadows Project and, if warranted, filing an application for the development of a mining operation, as well as for general working capital.
To view the whole press release, click here.
