Midway Gold secures $55 million three-year project finance facility

By Lisa Kerner

Charlotte, N.C., July 21 – Midway Gold Corp. closed its previously announced $55 million three-year senior secured project finance facility with Commonwealth Bank of Australia.

The facility is comprised of two tranches: a project finance facility of $45 million and a cost overrun facility of $10 million, according to a company news release.

Advances under the project finance facility will bear interest at Libor plus 350 basis points to 375 bps. Advances under the cost overrun facility will bear interest at the project finance facility rate plus 200 bps.

Proceeds will be used to fund continued development of the company’s 100%-owned Pan Gold Mine, which is located in White Pine County, Nev.

The loan facility is secured by substantially all of the assets of the borrower.

Midway, based in Vancouver, B.C., is a development-stage company that acquires, explores and develops gold and silver mineral properties in North America.

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