Midas Gold has entered into funding agreements for gross proceeds of $35-million to be used for funding continued work on the Stibnite gold project, in Idaho, in the US.
The company said it would raise at least C$33.2-million, or about $25-million, from Paulson & Co, which on behalf of the several investment funds and accounts managed by it, would purchase Canadian-dollar denominated 0.05% senior unsecured convertible notes on a private placement basis.
In addition, BMO Capital Markets and Sprott Capital Partner, as well as a syndicate of agents, including Cormark Securities and Haywood Securities, would seek to raise another C$13.28-million, or $10-million, in a brokered private placement of notes and/or common shares at C$0.53 a share.
Midas said that Paulson would subscribe for any portion of the brokered offering not purchased by other investors.
“While our permitting process has been extended a number of times, driving costs higher, these investments recognize the significant economic and environmental opportunity presented by the Stibnite gold project, where redevelopment of a heavily impacted brownfields mine site will provide more than 500 long-term, well-paid jobs in rural Idaho and a long term supply of the critical mineral antimony, while funding the clean-up of decades of environmental impacts from decades of mining by prior owners and the restoration of the site, and particularly passage for salmon and bull trout to the headwaters of the East Fork of the South Fork of the Salmon river for the first time in more than 80 years.”
The company is facing litigation over claims relating to water impacts owing to historical mining activity prior to Midas’ involvement in the site. The Nez Perce Tribe filed legal action in the US District Court of Idaho in August, which the company is defending.