Midway Gold Corp. (TSX:MDW,NYSEMKT:MDW) announced that it’s closed a US$10.5-million subordinated debt financing with Hale Capital Partners. The money will go towards working capital as the company ramps up production at its Nevada-based Pan mine.

The company also provided an operations update, noting that a resource modeling review is currently being completed for the entire Pan resource.

Details of the subordinated loan facility are as follows:

• On April 17, 2015 we closed a subordinated loan facility with Hale for US$10.5 million with a maturity date of September 30, 2017 that can be used for general corporate purposes. An initial draw of US$3.85 million was made at closing.
• An independent committee of the Board of Directors negotiated and approved the terms of the loan.
• The loan includes a 2% origination fee and bears interest at 13.5% per annum.
• The undrawn commitment is subject to a commitment fee of 5% per annum through the loan availability period of September 30, 2015.
• There are customary conditions precedent and post-closing obligations that must be met in order to make future loan draws.
• Documentation regarding the facility will be filed on SEDAR and EDGAR.

Bill Zisch, president and CEO of Midway, commented:

We are appreciative of the financial support that has been provided by a key investor, Hale Capital. With this support we will continue to work diligently to complete commissioning of the Pan Mine.

Click here to read the full Midway Gold Corp. (TSX:MDW,NYSEMKT:MDW) press release.