Proceeds slated for exploration, development of Golden Meadows project
By Devika Patel
Knoxville, Tenn., March 7 - Midas Gold Corp. said it raised C$891,000 in the second and final tranche of a non-brokered private placement of units. The deal priced for about C$10 million on Feb. 26 and was increased to C$12.77 million on March 4, when the initial tranche settled for C$11.88 million.
The company sold a total of 14.19 million units of one common share and one half-share warrant at C$0.90 per unit. It sold 13.2 million units in the first tranche and an additional 990,000 units in the second tranche.
Each warrant is exercisable at C$1.20 until March 4, 2016 and March 7, 2016. The strike price is a 22.45% premium to the company's C$0.98 closing price on Feb. 25.
Teck Resources Ltd. bought 1,277,621 units for C$1.15 million.
Proceeds will be used for the exploration and development of the company's Golden Meadows project in Idaho and for general working capital purposes.
Midas Gold Corp., through its wholly owned subsidiaries Midas Gold, Inc. and Idaho Gold Resources, LLC, controls a number of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho. The company is based in Vancouver, B.C.
| Issuer: | Midas Gold Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$12,771,000
|
| Units: | 14.19 million
|
| Price: | C$0.90
|
| Warrants: | One half-share warrant per unit
|
| Warrant strike price: | C$1.20
|
| Warrant expiration: | March 4, 2016, March 7, 2016
|
| Agent: | Non-brokered
|
| Investor: | Teck Resources Ltd. (for C$1,149,859)
|
| Pricing date: | Feb. 26
|
| Upsized: | March 4
|
| Settlement date: | March 4 (for C$11.88 million), March 7 (for C$891,000)
|
| Stock symbol: | Toronto: MAX
|
| Stock price: | C$0.98 at close Feb. 25
|
| Market capitalization: | C$132.64 million
|
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