Midway Gold selects GRP Minerals as stalking horse bidder for assets

By Caroline Salls

Pittsburgh, April 29 – Midway Gold US Inc. selected GRP Minerals LLC as the stalking horse bidder for substantially all of its remaining assets, according to a notice filed Thursday with the U.S. Bankruptcy Court for the District of Colorado.

Specifically, GRP offered, subject to the receipt of higher bids and court approval, a purchase price comprised of $5.25 million in cash, assumption of a reclamation debt estimated to be $16.1 million and assumption of other Midway liabilities.

If GRP is not the high bidder for the assets, Midway Gold will pay it a 3% break-up fee and reimburse up to $150,000 of its sale-related expenses.

Initial overbids must be at least equal to the stalking horse bid amount, plus the amount of the break-up fee, expense reimbursement and a $100,000 minimum bidding increment.

Midway, based in Vancouver, B.C., is a development-stage company that acquires, explores and develops gold and silver mineral properties in North America. The company filed for bankruptcy on June 22, 2015 under Chapter 11 case number 15-16835.

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