Press Releases
MIDAS GOLD’S STIBNITE GOLD PROJECT CONTINUES TO ADVANCE
Publication of Draft Environmental Impact Statement for Proposed Stibnite Gold Project Anticipated in Jan. 2020
VANCOUVER, BRITISH COLUMBIA – Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) reported today that the U.S. Forest Service (“USFS”) has indicated that the Draft Environmental Impact Statement (“EIS”) for the Stibnite Gold Project (“Project”) in Valley County, Idaho, will be made available for public review in January 2020. Midas Gold Idaho continues to work closely with federal and state regulators to ensure that the permitting process remains on track. The USFS also anticipates issuing a Final EIS and Draft Record of Decision (“ROD”) in Q4 2020 and the Final ROD for the Project in Q1 2021. The USFS, as lead agency working in cooperation with the six other federal, state and local agencies responsible for permitting the Project, provided an indication of the timeline as part of a regular update on the Project.
“The USFS and cooperating agencies continue to advance the regulatory review of the Stibnite Gold Project and, in January 2020, the public will be able to begin commenting on our proposed redevelopment and restoration of this historical mining area,” said Laurel Sayer President & CEO of Midas Gold Idaho. “After years of thorough analysis and review, we are much closer to fully realizing the benefits of the Stibnite Gold Project. Through redevelopment of a brownfields site, this Project is designed to restore fish habitat, reconnect salmon to their native spawning grounds and address numerous legacy impacts from historical mining activities to improve water quality. If permitted, we will bring hundreds of well-paying jobs to rural Idaho and invest hundreds of millions of dollars in the state while bringing environmental restoration to a long-abandoned mine site. We want to see all of this happen and we will continue to work closely with regulators to meet the Project timeline.”
Joint Review Process
Seven federal, state and local agencies involved in permitting the Project signed the Stibnite Joint Review Process Memorandum of Understanding (“MOU”) in 2017, committing to work together to evaluate the Plan of Restoration and Operations (“PRO”) for the Project under the National Environmental Policy Act (“NEPA”). The MOU was designed so agencies could collaborate in the review and preparation of the EIS, meet the requirements of the public process and follow a mutually agreed upon schedule. Agency cooperation and collaboration remains key to the timeliness and completeness of the process.
Permitting Process & Schedule
The PRO was accepted as complete by the USFS in December 2016, and the USFS conducted Public Scoping in June and July of 2017. Since that time, the USFS, their contractor AECOM, and other cooperating agencies have continued with their review of the PRO, baseline data and public comments, defining potential alternatives and analyzing them, and reviewing additional information they requested and which Midas Gold Idaho has provided. In response to agency comments and, based on results of modelling performed by Midas Gold Idaho, Midas Gold Idaho modified a number of Project components to reduce Project footprint, improve water quality and enhance habitat. This modified PRO (“ModPRO”) is being considered alongside other alternatives being assessed by the regulators under NEPA.
Under NEPA, regulators need to ensure that they meet the regulatory requirements to support a robust and defensible Record of Decision. During the review process, regulators filed 127 requests for additional information (“RFAI”) and have submitted multiple additional requests for clarification to Midas Gold Idaho to ensure the thoroughness of the environmental impact analysis and to aid in their careful consideration of the proposed plan and various alternative development scenarios, including those set out in the ModPRO.
“Our team is working hard to design, permit and build a modern mining project that can be profitable and have a positive impact on the local community and environment,” said Laurel Sayer, CEO of Midas Gold Idaho. “The review by the USFS is comprehensive and thorough and will help make our project better. In fact, through the permitting process, we have been able to identify multiple refinements to our initial proposal that reduce the Project impact and improve environmental outcomes, including those detailed in the modified PRO. We are proud of the work we have completed and look forward to moving into the next phase of permitting.”
Next Steps in the Regulatory Process
The Draft EIS is the culmination of a thorough environmental analysis and assessment of multiple alternatives, which is required by NEPA. Once the Draft EIS is released, which the USFS has indicated should take place in January 2020, there will be a minimum of a 45-day public comment period as required by NEPA. Immediately following the public comment period, the USFS and cooperating agencies will respond to all comments and produce the Final EIS and a Draft ROD, which is anticipated to occur in Q4 2020. Upon publication of the Final EIS, there would be a period for objections and resolution before a Final ROD is published. The Final ROD is now anticipated in Q1 2021. A positive final decision would allow Midas Gold Idaho to seek the issuance of the final permits that are dependent on the ROD being issued. Additional details on the schedule will be announced by the USFS on or about January 2, 2020.
Feasibility Study Status
Midas Gold Idaho’s technical team and consultants continue to advance the feasibility study for the Project; the study will be completed following the issuance of the Draft EIS, to ensure that Project components included in the Draft EIS are addressed in the study. While substantially all of the work related to mineral resource estimation, metallurgy, ore processing, geotechnical, tailings management, mining, surface and ground water management, infrastructure (including access road, powerline, tunnel, and worker housing) and other aspects of the Project needed to support a feasibility study are well advanced, finalization of the design, capital and operating costs, and the technical report, are awaiting completion of various ongoing optimization studies and publication of the Draft EIS.
As previously disclosed, the feasibility study will incorporate the results of a number of Project optimizations, including updated mineral resource estimates, results of optimized metallurgy and processing, optimized layout and plant design, and other considerations. A number of these optimizations are focused on reducing potential environmental effects and impacts from mine redevelopment, reducing technical risks, and to enhance the restoration of the site to ensure a healthy, sustainable ecosystem during and after operations. The extended permitting schedule has provided the opportunity to undertake value engineering exercises and third-party reviews that would typically be completed after a feasibility study. The results of these processes have led to optimization and risk reduction in various aspects of the Project, including: the process flowsheet; plant layout; mine planning, scheduling and stockpiling; and sitewide water management.
Litigation Update
As announced on June 7, 2019, Midas Gold reported that it and its subsidiaries were advised by the Nez Perce Tribe (“Tribe”) that it intended to initiate legal action against the Corporation and its subsidiaries related to water quality impacts due to historical mining activity prior to Midas Gold’s and its subsidiaries involvement with the site. The Tribe subsequently filed the legal action in the U.S. District Court of Idaho on August 8, 2019 and the Corporation and its subsidiaries are defending against the litigation, filing several responses to the allegations requesting the Federal court to stay the proceedings while negotiations with the U.S. Environmental Protection Agency (“EPA”), the Idaho Department of environmental Quality (“IDEQ”) and the USFS are proceeding on an agreement to further address site conditions under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). The Corporation and its subsidiaries are also requesting the Federal Court to dismiss the action. Should such an agreement be concluded, the Tribe’s lawsuit is required to be dismissed under CERCLA.
Neither Midas Gold nor its subsidiaries caused the current water quality issues at the site. Neither Midas Gold nor its subsidiaries have ever conducted any mining operations at site and therefore have no control or responsibility for any pollutant discharges on the site. Midas Gold’s subsidiaries’ actions on the Project site have been limited to studying current mineral resource potential and environmental conditions in the Stibnite Mining District, evaluating the optimal solutions for remediation and restoration and presenting those solutions to the governmental agencies with appropriate regulatory authority as part of an integrated redevelopment plan for the site. Midas Gold’s subsidiaries have routinely and regularly communicated with environmental regulators on the issue of the site’s water quality. Midas Gold’s subsidiaries have regularly reported to the Federal and State regulators current information on the condition of surface and groundwater and are working closely with the IDEQ and the EPA to gain permission to take further action and learn more about the specific causes of degraded water quality.
Midas Gold continues to believe that the best solution for the site is for all stakeholders to work together to implement the comprehensive reclamation and restoration of the numerous legacy issues around the site, funded through cash flow from the redevelopment of the site as a modern mining operation.
Stibnite Gold Project Permitting Background
A detailed presentation on the PRO can be found at www.midasgoldcorp.com. Details of previous news releases and technical studies can be found filed under Midas Gold’s profile on SEDAR (www.sedar.com) or at www.midasgoldcorp.com.
About Midas Gold and the Stibnite Gold Project
Midas Gold’s subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Forward-Looking Information
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, next steps and courses of action including actions to be taken by the USFS, the State of Idaho and other government agencies and regulatory bodies; the indication of timeline provided by the USFS; the anticipated timing for issuance of the draft and final EIS and ROD; the potential for job creation, investment and environmental restoration; next steps in the regulatory process including, but not limited to, the timing for receipt of and responses to public comments, and the announcement by the USFS of additional details on the schedule; and the expected timing for completion of the feasibility study for the Project and the projected contents of the feasibility study; . In certain cases, Forward-Looking Information can be identified by the use of words and phrases or variations of such words and phrases or statements such as “anticipates”, “complete”, “comprehensive”, “defensible”, “ensure”, “potential” and “robust”, in relation to certain actions, events or results “could”, “may”, “will”, “would”, be achieved. In preparing the Forward-Looking Information in this news release, Midas Gold has applied several material assumptions, including, but not limited to, assumptions that the current objectives concerning the Stibnite Gold Project can be achieved and that its other corporate activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner; that the formal review process under the NEPA (including a joint review process involving the USFS, the State of Idaho and other agencies and regulatory bodies) as well as the public comment period and EIS will proceed in a timely manner and as expected; that all requisite information will be available in a timely manner; that the progression of the litigation involving the Nez Perce Tribe will proceed and be ruled on by the court on the basis and within the time frame as expected. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Midas Gold to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, changes in laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may result in unforeseen results in the review process under the NEPA; uncertainty surrounding input to be received pursuant to the public comment period; risks related to dependence on key personnel; risks related to unforeseen delays in the review process including availability of personnel from the USFS, State of Idaho and other agencies and regulatory bodies (including, but not limited to, future US government shutdowns); risks related to the outcome of litigation and potential for delay of the Project; risks related to opposition to the Project, as well as those factors discussed in Midas Gold’s public disclosure record. Although Midas Gold has attempted to identify important factors that could affect Midas Gold and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Midas Gold does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
PERMITTING PROCESS FOR MIDAS GOLD’S STIBNITE GOLD PROJECT CONTINUES TO ADVANCE
Record of Decision for Proposed Stibnite Gold Project Still Expected in Late Q4 2020
VANCOUVER, BRITISH COLUMBIA – Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) (“Midas Gold” or the “Company”)reported today that permitting for the Stibnite Gold Project (“Project”) continues to move forward on the schedule announced on April 2, 2019, without any additional delays. Midas Gold Idaho, a subsidiary of Midas Gold, has been working closely with federal and state regulators to ensure that the permitting remains on track with the agreed schedule. This is the second quarter in a row that the United States Forest Service (“USFS”) has held to issuing a Draft Environmental Impact Statement (“EIS”) for public comment in late Q4 2019. This schedule also forecasts issuing a Final EIS and Draft Record of Decision (“ROD”) in Q3 2020 and the Final ROD for the Project in late Q4 2020. The USFS, in cooperation with the six other federal, state and local agencies responsible for the permitting schedule, provided the updated timeline as part of its quarterly update on the Project, which is located in Valley County, 44 miles northeast of Cascade and 14 miles from Yellow Pine, Idaho.
“We are pleased that the USFS continues to meet the permitting schedule published in April 2019 and that, in a few months’ time, the public will be able comment on our proposed project,” said Laurel Sayer President & CEO of Midas Gold Idaho. “After years of thorough analysis and review, we are getting closer to fully realizing the benefits of the Stibnite Gold Project. Through redevelopment of a brownfields site, this Project is designed to restore fish habitat, reconnect salmon to their native spawning grounds and address numerous legacy impacts from historical mining activities in order to improve water quality. If permitted, we will bring hundreds of well-paying jobs to rural Idaho and invest hundreds of millions of dollars in the state while bringing environmental restoration to a long-abandoned mine site. We want to see all of this happen and we will continue to work closely with regulators to meet the project timeline.”
Joint Review Process
Seven federal, state and local agencies involved in permitting the Project signed the Stibnite Joint Review Process Memorandum of Understanding (“MOU”) in 2017, committing to work together to evaluate the Plan of Restoration and Operations (“PRO”) for the Stibnite Gold Project under the National Environmental Policy Act (“NEPA”). The MOU was designed so agencies could collaborate in the review and preparation of the EIS, meet the requirements of the public process and follow a mutually agreed upon schedule. Agency cooperation and collaboration remains key to the timeliness and completeness of the process.
Permitting Schedule
The PRO was accepted as complete by the USFS in December 2016, and the USFS submitted a Notice of Intent to initiate review of the Project and then conducted Public Scoping in June and July of 2017. Since that time, the USFS, their contractor AECOM, and other cooperating agencies have continued with their review of the PRO, baseline data and public comments, defining potential alternatives and analyzing them, and reviewing additional information they requested and which Midas Gold Idaho has provided. In response to agency comments and, based on the results of analysis of potential outcomes modelled by Midas Gold Idaho, Midas Gold Idaho modified a number of Project components in order to reduce Project footprint, improve water quality and enhance habitat. This modified PRO (“ModPRO”) is being considered alongside other alternatives being assessed by the regulators under NEPA.
Under NEPA, regulators need to ensure that they meet the regulatory requirements to support a robust and defensible Record of Decision. During the review process, regulators filed 127 requests for additional information (“RFAI”) in order to evaluate the thoroughness of the environmental impact analysis and have received tens of thousands of pages of additional data and analysis to aid in their careful consideration of the proposed plan and various alternative development scenarios, including those set out in the ModPRO. In January and April 2019, the USFS had pushed back the release of the Draft EIS in order to accommodate thorough and comprehensive evaluations of the information provided in the ModPRO and in response to information provided under the RFAIs.
“Our team is working hard to design, permit and build a modern mining project that can be profitable and have a positive impact on the local community and environment,” said Laurel Sayer, CEO of Midas Gold Idaho. “We appreciate the painstaking review by the USFS because we know it will make our project better. In fact, through the permitting process, we have been able to identify multiple refinements to our initial proposal that reduce the project impact and improve environmental outcomes, including those detailed in the modified PRO. We are proud of the work we have completed and look forward to moving into the next phase of permitting. We appreciate the USFS and other regulator’s commitment to the maintain the permitting timeline as they complete their review.”
Next Steps in the Regulatory Process
The USFS, on behalf of the various regulatory agencies, is currently completing the alternatives assessment and environmental analysis as required by NEPA. This is the core of the review process and provides the basis for drafting of the Draft EIS, which is currently being prepared.
The next opportunity for public review and comment will come when the agencies release the Draft EIS, which is currently anticipated to take place late Q4 2019, with a 45-day public comment period to commence following publication of the Draft EIS. After the comment period, the USFS and cooperating agencies would produce the Final EIS and a Draft ROD as well as addressing public comments received on the Draft EIS. Upon publication of the Final EIS, there would be a period for objections and resolution before a Final ROD is published. A positive final decision would allow Midas Gold Idaho to seek the issuance of the final permits that are dependent on the ROD being issued.
Feasibility Study Status
Midas Gold Idaho’s technical team and consultants continue to advance their work on a feasibility study for the Stibnite Gold Project, which will be completed following the issuance of the Draft EIS to ensure that any Project components in the Draft EIS are addressed in the study. While substantially all of the work related to mineral resource estimation, metallurgy, geotechnical, infrastructure (including road access, powerline, tunnel design) and other aspects of the Project needed to support a feasibility study is well advanced, finalization of the design and estimating of capital and operating costs and the actual feasibility study are awaiting completion of various ongoing optimization studies and the Draft EIS.
As previously disclosed, the feasibility study looks to incorporate the results of a number of Project optimizations, including updated mineral resource estimates, results of optimized metallurgy and processing, optimized layout and plant design, and other considerations. A number of these optimizations are focused on reducing potential environmental effects and impacts from mine redevelopment, and to enhancing the restoration of the site to ensure a healthy, sustainable ecosystem during and after operations. The extended permitting schedule, resulting from the delays announced in late 2018 and early 2019, does provide the opportunity to undertake certain value engineering exercises, where deemed appropriate, and to include the results of such evaluations in the feasibility study. As part of this Project optimization process, Midas Gold’s personnel and its consultants are also working to optimize various aspects of the Project, including mine planning, scheduling and stockpiling, plant layout and water management strategies.
Litigation Update
On or before October 18, 2019, Midas Gold Idaho will file its initial response to the lawsuit filed by the Nez Perce Tribe under the Clean Water Act, which litigation was discussed in the news release dated June 7, 2019. Before the action was filed, the Company was engaged, and continues to be, in negotiations with the United States Environmental Protection Agency, the State of Idaho and the United States Forest Service to further address site legacy conditions under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), issues that the Company did not create. Midas Gold Idaho continues to believe that, instead of litigation, the best solution for the site is for all stakeholders to work together to implement the comprehensive reclamation and restoration of the numerous legacy issues around the site, funded through cash flow from the redevelopment of the site as a modern mining operation.
Stibnite Gold Project Permitting Background
A detailed presentation on the PRO can be found at www.midasgoldcorp.com. Details of previous news releases and technical studies can be found filed under Midas Gold’s profile on SEDAR (www.sedar.com) or at www.midasgoldcorp.com.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries, are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Forward-Looking Information
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, next steps and courses of action including, but not limited to, actions to be taken by the USFS, the State of Idaho and other government agencies and regulatory bodies; the anticipated permitting schedule; next steps in the regulatory process; and potential timing for completion of a feasibility study. In certain cases, Forward-Looking Information can be identified by the use of words and phrases or variations of such words and phrases or statements such as “anticipates”, “complete”, “comprehensive”, “defensible”, “ensure”, “potential” and “robust”, in relation to certain actions, events or results “could”, “may”, “will”, “would”, be achieved. In preparing the Forward-Looking Information in this news release, Midas Gold has applied several material assumptions, including, but not limited to, assumptions that the current objectives concerning the Stibnite Gold Project can be achieved and that its other corporate activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner; that the formal review process under the NEPA (including a joint review process involving the USFS, the State of Idaho and other agencies and regulatory bodies) as well as the public comment period and EIS will proceed in a timely manner and as expected; and that all requisite information will be available in a timely manner. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Midas Gold to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, changes in laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may result in unforeseen results in the review process under the NEPA; uncertainty surrounding input to be received pursuant to the public comment period; risks related to dependence on key personnel; risks related to unforeseen delays in the review process including availability of personnel from the USFS, State of Idaho and other agencies and regulatory bodies (including, but not limited to, future US government shutdowns); risks related to the outcome of potential litigation; risks related to opposition to the Project, as well as those factors discussed in Midas Gold’s public disclosure record. Although Midas Gold has attempted to identify important factors that could affect Midas Gold and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Midas Gold does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
MIDAS GOLD CONTINUES TO ADVANCE SOLUTIONS TO ADDRESS PRE-EXISTING CONTAMINATION IN THE STIBNITE MINING DISTRICT
Midas Gold’s Stibnite Gold Project Designed to Address Legacy Issues
August 9, 2019 – Midas Gold Corp. (TSX:MAX, OTCQX:MDRPF) (“Midas Gold” or the “Company”) understands that the Nez Perce Tribe has followed on from its Notice of Intent to sue (as reported by Midas Gold on June 6, 2019) by filing suit in federal court on essentially the same matters as discussed in the June 6, 2019 release. Midas Gold will vigorously defend the unwarranted and misguided lawsuit over water quality in the Stibnite Mining District related to historical mining activity dating back over 80 years and long before the Company acquired any rights to the site. Midas Gold is not, and has never, operated on site and is not responsible for the existing contamination but has proposed the Stibnite Gold Project (“Project”) as a means for providing the much-needed cleanup of historical waste polluting the area today. The lawsuit ignores the fact that Midas Gold Idaho has been actively working with regulators to gain permission to begin addressing water quality concerns even before the Project begins.
“It is unfortunate that we are now adversaries in ligation instead of partners in restoration,” said Laurel Sayer, CEO of Midas Gold Idaho. “Midas Gold and the Tribe are aligned on our concerns over water quality in the historic mining district and believe something must be done. This is why we’ve been working with the federal and state environmental regulators for well over a year and half on solutions, and for much longer on permitting the permanent solution. And, while we agree the site needs immediate attention to clean up the damage of the past, make no mistake – the problems outlined in this lawsuit were not caused by Midas Gold. We agree there is a problem, but a far better path would be for the Tribe to spend its energy and resources working with us on a solution rather than filing lawsuits. Filing a lawsuit at this stage merely impedes the process of the site getting the attention it deserves.”
Midas Gold has never conducted any mining operations at Stibnite and therefore has no control or responsibility for any pollutant discharges at the site. The Company’s actions have been limited to studying current conditions, evaluating the optimal solutions for remediation and restoration and presenting those solutions to the regulators responsible for permitting the site.
Water quality in the historical Stibnite Mining District has been impacted by more than a century of mining activity, most of which took place before modern environmental regulations existed. There are over three million tons of tailings from the World War II era laying unconstrained in the Meadow Creek Valley, capped by an additional seven million tons of spent heap leach ore, and numerous other open pits and waste rock dumps across the site. It is not unexpected to see elevated levels of metals in ground and surface water with these conditions.
Midas Gold developed its Plan of Restoration and Operations, which is currently under review of the U.S. Forest Service (USFS), to improve water quality and fix the long-standing environmental issues facing the site as part of its proposed Stibnite Gold Project. The proposed Project would reconnect fish to their native spawning grounds, fix the largest source of sedimentation in the river and remove tailings and waste rock that degrade water quality.
Midas Gold has been studying the water quality of the site for almost a decade. Water quality sampling undertaken by the Company as part of its characterization of the site showed very high arsenic and antimony levels, far beyond what is considered acceptable for drinking water or aquatic life standards. The Company has regularly submitted this and other water quality information to the USFS and state and federal environmental regulators as a part of Midas Gold’s continuing obligations under the federal Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). Under CERCLA, the Company is required to exercise appropriate care on the site and provide notice to environmental regulators regarding any discovery of hazardous substances and provide full cooperation, assistance and access to individuals authorized to act on site in hopes of finding solutions to improve the current conditions.
Midas Gold has been working closely with the Idaho Department of Environmental Quality and the United States Environmental Protection Agency to gain permission to take immediate action and learn more about the specific causes of degraded water quality in a number of locations. Under CERCLA, Midas Gold is not legally responsible for cleanup of site legacy impacts caused by previous mining companies or directed by government agencies. However, the Company wants to be part of the solution.
Despite Midas Gold’s proposed plan to improve water quality and address legacy issues caused by others, the Nez Perce Tribe nonetheless decided to move forward with its lawsuit against Midas Gold.
Midas Gold has engaged with and attempted to work with the Nez Perce Tribe for the last several years. In fact, the Company has reached out on multiple occasions, but the Tribe has refused the most recent overtures by the Company to collaborate on solutions for the Stibnite District.
Independent from its defense of this unproductive lawsuit, the Company will continue moving forward with its long-standing work to assess and improve water quality in the area, restore the site and return the site to environmental standards not seen in decades through responsible, modern mining.
About Midas Gold and the Stibnite Gold Project
Midas Gold, through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
About the Stibnite Gold Project:
The historic Stibnite Mining District has seen over 100 years of mining activity. In 1938, the area became subject to large-scale mining on private and federal lands, largely for purposes of aiding the war effort with the production of tungsten and antimony. Since then, limited remediation of environmental legacies has occurred, but major impacts remain. The East Fork of the South Fork of the Salmon River flows directly into an abandoned mining pit, blocking anadromous fish from reaching spawning grounds. Abandoned tailings and waste rock lie on the valley floor, in unlined facilities, and are a threat to ground and surface water quality.
Midas Gold had no involvement in any of the historic mining that occurred at Stibnite. However, the Company’s plan for the Stibnite Gold Project contains a comprehensive plan for the reclamation, remediation and restoration of a landscape scarred by legacy contamination and addressing historical mining impacts across much of the site funded by the redevelopment of the site as a significant, long-life, modern mining operation. Midas Gold’s Plan of Restoration and Operations is currently under review by regulators.
Stibnite Gold Project Permitting Background
A detailed presentation on the Plan of Restoration and Operations can be found at www.midasgoldcorp.com. Details of previous news releases and technical studies can be found filed under Midas Gold’s profile on SEDAR (www.sedar.com) or at www.midasgoldcorp.com.
Forward-Looking Information
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, next steps and courses of action including actions to be taken by the USFS, the State of Idaho and other government agencies and regulatory bodies. In certain cases, Forward-Looking Information can be identified by the use of words and phrases or variations of such words and phrases or statements such as “anticipates”, “complete”, “comprehensive”, “defensible”, “ensure”, “potential” and “robust”, in relation to certain actions, events or results “could”, “may”, “will”, “would”, be achieved. In preparing the Forward-Looking Information in this news release, Midas Gold has applied several material assumptions, including, but not limited to, assumptions that the current objectives concerning the Stibnite Gold Project can be achieved and that its other corporate activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner; that the formal review process under the National Environmental Policy Act (including a joint review process involving the USFS, the State of Idaho and other agencies and regulatory bodies) as well as the public comment period and Environmental Impact Statement will proceed in a timely manner and as expected; and that all requisite information will be available in a timely manner. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Midas Gold to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, changes in laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may result in unforeseen results in the review process under the NEPA; uncertainty surrounding input to be received pursuant to the public comment period; risks related to dependence on key personnel; risks related to unforeseen delays in the review process including availability of personnel from the USFS, State of Idaho and other agencies and regulatory bodies (including, but not limited to, future US government shutdowns); uncertainty as to what further actions or steps, if any, the Nez Perce Tribe will take; risks related to opposition to the Stibnite Gold Project, as well as those factors discussed in Midas Gold’s public disclosure record. Although Midas Gold has attempted to identify important factors that could affect Midas Gold and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Midas Gold does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
MIDAS GOLD CORP. ANNOUNCES CLOSING OF C$19.9 MILLION BOUGHT DEAL PUBLIC OFFERING
Funds to be used to advance the Stibnite Gold Project, Idaho
June 19, 2019 – Midas Gold Corp. (TSX:MAX, OTCQX:MDRPF) (“Midas Gold” or the “Company”) is pleased to announce that it has closed the previously announced bought deal equity financing (the “Offering”) led by RBC Capital Markets and BMO Capital Markets (as co-lead underwriters) and including Haywood Securities Inc. The Company has issued 33,200,000 common shares (the “Offered Shares”) at a price of C$0.60 per Offered Share for aggregate gross proceeds of C$19,920,000. The Offered Shares were qualified for distribution by a prospectus supplement dated June 12, 2019 to the Company’s existing Canadian base shelf prospectus dated April 4, 2019.
The net proceeds from the sale of the Offered Shares will be used to advance the feasibility study on, and permitting for, the redevelopment and restoration of the Stibnite Gold Project, Idaho, and for general working capital purposes.
Paulson & Co. Inc. (“Paulson”) purchased 9,664,520 Offered Shares to maintain its pro rata interest of 29.11% of outstanding common shares on a partially diluted basis assuming conversion of only the outstanding senior unsecured convertible notes held by Paulson (and no other outstanding convertible securities of the Company) into common shares, pursuant to Paulson’s contractual participation right under the investor rights agreement dated March 17, 2016, as amended May 9, 2018, between Paulson, Idaho Gold Resources Company, LLC (a subsidiary of Midas Gold) and the Company.
Barrick Gold Corporation (“Barrick”) purchased 7,274,142 Offered Shares, pursuant to its contractual participation commitment under the investor rights agreement dated May 16, 2018, as amended March 24, 2019, May 15, 2019 and May 24, 2019 between Barrick and the Company. Upon completion of the Offering, Barrick has a 19.9% ownership interest of all outstanding common shares of the Company.
By virtue of the participation of Paulson and Barrick, both of which are insiders of the Company, the Offering constituted a “related party transaction” under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to subsections 5.5(a) and 5.7(1)(a) thereunder.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The Offered Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
About Midas Gold and the Stibnite Gold Project
Midas Gold, through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Caution Regarding Forward Looking Information:
This news release contains forward-looking statements regarding the use of proceeds of the Offering and continued advancement of the Stibnite Gold Project. These forward-looking statements are provided as of the date of this news release, or the effective date of the documents referred to in this news release, as applicable, and reflect predictions, expectations or beliefs regarding future events based on the Company’s beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, that general economic and business conditions will not change in a materially adverse manner. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but specifically include, without limitation, risks relating to general market conditions and the additional risks described in the Company’s final short form base shelf prospectus dated April 4, 2019 and prospectus supplement dated June 12, 2019, the Company’s latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR. The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
MIDAS GOLD CORP. ANNOUNCES BOUGHT DEAL PUBLIC OFFERING
Vancouver, June 10, 2019 – Midas Gold Corp. (TSX:MAX, OTCQX:MDRPF) (“Midas Gold” or the “Company”) has today entered into an agreement with RBC Capital Markets and BMO Capital Markets (as co-lead underwriters) and a syndicate of underwriters (collectively, the “Underwriters”) in connection with a bought deal public offering (the “Offering”) of 33,200,000 common shares of the Company (the “Common Shares”). The Common Shares will be offered at a price of C$0.60 per Common Share for gross proceeds of approximately C$19.9 million.
The proceeds from the sale of the Common Shares will be used to advance the feasibility study on, and permitting for, the redevelopment and restoration of the Stibnite Gold Project, Idaho, and general working capital.
Paulson & Co. Inc. (“Paulson”) has indicated its intent, by participating in the Offering, to maintain its pro rata interest of 29.11% of outstanding Common Shares, on a partially diluted basis assuming conversion of only the outstanding senior unsecured convertible notes held by Paulson (and no other outstanding convertible securities of the Company) into Common Shares, pursuant to Paulson’s contractual participation right under the investor rights agreement dated March 17, 2016, as amended May 9, 2018, between Paulson, Idaho Gold Resources Company, LLC (a subsidiary of Midas Gold) and the Company.
Barrick Gold Corporation (“Barrick”), a 19.6% shareholder of the Company, pursuant to its contractual participation commitment under the investor rights agreement dated May 16, 2018, as amended March 24, 2019, May 15, 2019 and May 24, 2019 between Barrick and the Company, has indicated its intent to acquire, through participation in the Offering, such number of Common Shares as will allow Barrick to have a 19.9% ownership interest of all outstanding Common Shares upon completion of the Offering.
The Common Shares to be issued under the Offering will be offered in accordance with the terms of a prospectus supplement in all provinces in Canada except Quebec and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and such other jurisdictions as may be agreed upon by the Company and the Underwriters.
Closing of the Offering is expected to occur on or about June 19, 2019 and is subject to regulatory approval including that of the Toronto Stock Exchange.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Caution Regarding Forward Looking Information:
This news release contains forward-looking statements regarding the Offering, closing of the Offering, use of proceeds of the Offering, the filing of one or more prospectus supplements, and continued advancement of the Stibnite Gold Project. These forward-looking statements are provided as of the date of this news release, or the effective date of the documents referred to in this news release, as applicable, and reflect predictions, expectations or beliefs regarding future events based on the Company’s beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that regulatory approval of any shelf prospectus filings and related offerings will be obtained in a timely manner; that all conditions precedent to the completion of the Offering will be satisfied in a timely manner; that general economic and business conditions will not change in a materially adverse manner; and that the Company will be able to raise additional funds on reasonable terms. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but specifically include, without limitation, risks relating to: general market conditions; the Company’s ability to secure financing, on favourable terms, pursuant to the Company’s final short form base shelf prospectus dated April 4, 2019 (the “Shelf Prospectus”) and any prospectus supplements; and the additional risks described in the Shelf Prospectus and the Company’s latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR. The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
MIDAS GOLD’S PLAN TO ADDRESS PREVIOUS WATER CONTAMINATION IN STIBNITE MINING DISTRICT MODERN MINING OFFERS SOLUTIONS TO PROBLEMS CREATED BY HISTORIC MINING ACTIVITY
VANCOUVER, BRITISH COLUMBIA – Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) (“Midas Gold” or the “Company”) today announced that it has been advised that the Nez Perce Tribe intends to initiate legal action against the Company and its subsidiaries related to water quality impacts related to historical mining activity undertaken prior to Midas Gold’s involvement in the site.
Water quality in the historical Stibnite Mining District (the “District”) has been impacted by more than a century of mining activity, most of which took place before modern environmental regulations existed. In 2016, Midas Gold Idaho, Inc., an Idaho-based mining company that has never operated in the District, submitted a Plan of Restoration and Operations to improve water quality and fix the long-standing environmental issues facing the site as part of its proposed Stibnite Gold Project. Despite this proposal, the Nez Perce Tribe recently announced its intent to sue Midas Gold over its concerns of high concentrations of arsenic and other contaminants in the water at the site.
“We have long shared the Nez Perce Tribe’s concerns over water quality in the Stibnite Mining District and we are well aware of the site’s historically degraded water quality,” said Laurel Sayer, CEO of Midas Gold Idaho. “Filing a lawsuit will not fix the problem. Instead, the site needs to be cleaned up, a point on which we are certain the Tribe can agree with.”
Midas Gold did not cause the current water quality issues at the site. Midas Gold has never conducted any mining operations at site and therefore has no control or responsibility for any pollutant discharges. The Company’s actions have been limited to studying current conditions in the District, evaluating the optimal solutions for remediation and restoration and presenting those solutions to the regulators responsible for the site.
The Stibnite Mining District is a highly mineralized area and there are over three million tons of tailings from the World War II era laying unconstrained in the Meadow Creek valley, capped by an additional seven million tons of spent heap leach ore, and numerous other open pits and waste rock dumps across the site. It is therefore not unexpected to see elevated levels of metals in ground and surface water and it is likely that elevated levels of arsenic and antimony have been a problem for decades. Water quality sampling undertaken by Midas Gold as part of its characterization of the site showed very high arsenic and antimony levels, far beyond what is considered acceptable for drinking water or aquatic life standards. One monitoring station, which is adjacent to the East Fork of the South Fork of the Salmon River and downslope from a historic waste dump and hazardous waste repository installed by the US Forest Service (USFS), measured arsenic at more than 700 times higher than the drinking water standard. The Company has regularly submitted this and other water quality information to the USFS and state and federal environmental regulators as a part of Midas Gold’s ongoing obligation to report data to the agencies.
Midas Gold has routinely been meeting with environmental regulators on the issue of the site’s water quality. More recently, the Company began working closely with the Idaho Department of Environmental Quality and the United States Environmental Protection Agency to gain permission to take action and learn more about the specific causes of degraded water quality. Under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), Midas Gold is not legally responsible for legacy impacts at site caused by previous mining companies. However, the proposed Stibnite Gold Project, as set out in the Company’s Plan of Restoration and Operations submitted to regulators in 2016, is designed to resolve many problems facing site – including reconnecting fish to their native spawning grounds, fixing the largest source of sedimentation in the river and removing tailings and waste that degrade water quality. With the levels of arsenic and antimony being detected at elevated levels, Midas Gold believes it is important to work directly with regulators to address the causes of water contamination.
Midas Gold has been evaluating the region as a potential opportunity for redevelopment since 2009 and, in 2016, presented the Plan of Restoration and Operations to the USFS. The plan was designed to bring economic investment and environmental restoration to a mining district that suffers from many legacy impacts.
“Private industry is the partner regulators and local communities need to bring solutions to the Stibnite Mining District,” said Sayer. “Over the past several years, our team of engineers, consultants and experts have undertaken a wide-ranging characterization of the current issues at the site in order to develop a comprehensive plan to profitably and responsibly use mining to address the contamination and legacy issues. A lawsuit is counterproductive to a solution.”
Midas Gold has engaged with and tried to work with the Nez Perce Tribe for the last several years. The Tribe’s threat to sue the Company does not improve the water quality at the site, but Midas Gold hopes it will raise awareness of the current issues at Stibnite and importance of addressing environmental degradation in the area.
About the Stibnite Gold Project:
The historic Stibnite Mining District has seen over 100 years of mining activity. In 1938, the area became subject to large-scale mining on federal lands, largely for purposes of aiding the war effort with the production of tungsten and antimony. Since then, limited remediation of environmental legacies has occurred, but major impacts remain. The East Fork of the South Fork of the Salmon River flows directly into an abandoned mining pit, blocking anadromous fish from reaching spawning grounds. Abandoned tailings and waste rock lie on the valley floor, in unlined facilities, and are a threat to ground and surface water quality.
Midas Gold had no involvement in any of the historic mining that occurred at Stibnite. However, the Company’s plan for the Stibnite Gold Project contains a comprehensive plan for the removal, remediation, reclamation and restoration of legacy contamination and addressing of historical mining impacts across much of the site funded by the redevelopment of the site as a significant, long-life, modern mining operation. Midas Gold’s Plan of Restoration and Operations is currently under review by regulators.
Stibnite Gold Project Permitting Background
A detailed presentation on the Plan of Restoration and Operations can be found at www.midasgoldcorp.com. Details of previous news releases and technical studies can be found filed under Midas Gold’s profile on SEDAR (www.sedar.com) or at www.midasgoldcorp.com.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Forward-Looking Information
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward- looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, next steps and courses of action including actions to be taken by the USFS, the State of Idaho and other government agencies and regulatory bodies. In certain cases, Forward-Looking Information can be identified by the use of words and phrases or variations of such words and phrases or statements such as “anticipates”, “complete”, “comprehensive”, “defensible”, “ensure”, “potential” and “robust”, in relation to certain actions, events or results “could”, “may”, “will”, “would”, be achieved. In preparing the Forward-Looking Information in this news release, Midas Gold has applied several material assumptions, including, but not limited to, assumptions that the current objectives concerning the Stibnite Gold Project can be achieved and that its other corporate activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner; that the formal review process under the National Environmental Policy Act (including a joint review process involving the USFS, the State of Idaho and other agencies and regulatory bodies) as well as the public comment period and Environmental Impact Statement will proceed in a timely manner and as expected; and that all requisite information will be available in a timely manner. Forward- Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Midas Gold to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, changes in laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may result in unforeseen results in the review process under the NEPA; uncertainty surrounding input to be received pursuant to the public comment period; risks related to dependence on key personnel; risks related to unforeseen delays in the review process including availability of personnel from the USFS, State of Idaho and other agencies and regulatory bodies (including, but not limited to, future US government shutdowns); uncertainty as to what action or steps, if any, the Nez Perce Tribe will take; risks related to opposition to the Stibnite Gold Project, as well as those factors discussed in Midas Gold’s public disclosure record. Although Midas Gold has attempted to identify important factors that could affect Midas Gold and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Midas Gold does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
MIDAS GOLD REPORTS RESULTS OF ANNUAL GENERAL MEETING
VANCOUVER, BRITISH COLUMBIA – Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) (“Midas Gold” or the “Company”) today announced the results of its annual general meeting (the “AGM”), which was held in Vancouver on May 7, 2019. Following the meeting, Stephen Quin, President and CEO, provided those present with an overview of the Company’s progress over the past year and its plans going forward.
Annual General Meeting Voting Result
A total of 156,623,640 million common shares were represented at the AGM, or 66.4% of the votes attached to all outstanding shares at the Company’s record date of March 13, 2019. The Company’s shareholders voted in favour of the election of all director nominees listed in the Company’s management information proxy circular. Detailed results of the vote for the election of directors are as follows:
| Name of Nominee | Votes For | Votes Withheld | Total Votes* | Percentage of Votes For* | Percentage of Votes Withheld* |
|---|---|---|---|---|---|
| Keith Allred | 111,431,970 | 284,741 | 111,716,711 | 99.75% | 0.25% |
| Jaimie Donovan | 107,217,662 | 4,498,049 | 111,715,711 | 95.97% | 4.03% |
| Brad Doores | 111,393,492 | 323,219 | 111,716,711 | 99.71% | 0.29% |
| Marcelo Kim | 107,120,697 | 4,596,014 | 111,716,711 | 95.89% | 4.11% |
| Peter Nixon | 111,432,813 | 283,898 | 111,716,711 | 99.75% | 0.25% |
| Stephen Quin | 107,221,255 | 4,495,456 | 111,716,711 | 95.98% | 4.02% |
| Javier Schiffrin | 107,147,845 | 4,568,866 | 111,716,711 | 95.91% | 4.09% |
| Donald Young | 111,388,658 | 328,053 | 111,716,711 | 99.71% | 0.29% |
* Not all shares were voted in respect of all motions therefore the combined number of shares voted for or withheld may not add up to the total votes represented at the meeting.
The directors were elected to hold offices until the next annual meeting of shareholders or until their successors are elected or appointed.
The Company’s shareholders also approved the appointment of Deloitte LLP, Chartered Accountants, as the auditors of the Company for the fiscal year ending December 31, 2019 (99.39% voted in favour).
Detailed voting results for the meeting are available on SEDAR at www.sedar.com.
Corporate Update
Following the AGM, Stephen Quin, President & CEO of Midas Gold Corp. provided an update in respect of the Stibnite Gold Project, noting progress on advancing the project towards completion of a feasibility study and advancing the regulatory assessment process for site restoration and mine development.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
MIDAS GOLD GRANTS SHARES & CASH TO THE STIBNITE FOUNDATION
Stibnite Foundation will help to fund important community projects in Idaho
VANCOUVER, BRITISH COLUMBIA – Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) today announced it has provided an initial cash grant of $100,000 and issued 1.5 million common shares in the capital of the Company (the “Foundation Shares”), valued at US$877,500, to launch the Stibnite Foundation in Idaho. These grants to the Stibnite Foundation (the “Foundation”) were made in accordance with the Company’s ongoing annual and milestone funding obligations pursuant to the terms of the Community Agreement, details of which can be found in the Company’s December 4, 2018 news release. The Foundation will support projects that benefit the communities surrounding the Stibnite Gold Project and was created through the establishment of the Community Agreement between Midas Gold Idaho and eight communities and counties throughout the West Central Mountains region of Idaho.
The Foundation Shares are subject to, among other things, a hold period of four months, and may not be traded until August 17, 2019 except as permitted by applicable securities legislation and the rules and policies of the Toronto Stock Exchange.
“Being involved in the communities where we work has always been a strong part of the ethos of our company,” said Laurel Sayer, CEO of Midas Gold Idaho. “Since day one, we have helped to support the projects and causes that are important to the community. Over the past ten years, we’ve donated hundreds of thousands of dollars to local organizations, helped support efforts to upgrade two community parks and given many hours of our time to give back to the place we call home. Establishing the Stibnite Foundation is the next chapter of our company’s commitment to giving back to Idaho.”
Midas Gold will be required to directly address impacts of the Stibnite Gold Project, such as power and road improvements and environmental mitigation, through the permitting process. The Stibnite Foundation is intended to be a tool to fund projects that address other community desires and needs that may arise. Midas Gold will fund the Foundation through a combination of cash and stock contributions with the intent that the Foundation forms an endowment that can support local communities for generations. This is the first issuance of shares to the foundation, with additional cash and share grants scheduled tied to future progress.
About the Stibnite Foundation
The Stibnite Foundation was created through the establishment of a Community Agreement between Midas Gold Corp, Midas Gold Idaho and Adams County, Cascade, Council, Donnelly, Idaho County, New Meadows, Riggins and Yellow Pine. The Community Agreement was signed at the end of 2018.
Each of the communities who are part of the agreement appoint one representative to sit on the board of directors for the Stibnite Foundation. Communities are still in the process of appointing their representatives, and these appointments are anticipated to be completed in the near future. The Foundation places decision-making authority into the hands of the board of directors, and in turn the local communities. Midas Gold strongly believes that community members know the best investments to make to have the biggest impact.
Any group or community project may apply for funding from the Foundation, regardless of participation in the Community Agreement.
The Community Agreement obligated Midas Gold to create the Foundation and contribute cash and shares based on calendar and project milestones. In fulfillment of requirements for 2019, in addition to the grant of shares, Midas Gold will contribute a total of $200,000 this year and will provide another $100,000 in 2020. The Stibnite Foundation will continue to receive contributions from Midas Gold throughout operations based on a percentage of profit, as well as an additional grant of shares .
Midas Gold is in the process of establishing the necessary legal and tax status to begin operating as a charitable foundation. Charitable giving will begin within a year after receiving the necessary tax status from the Internal Revenue Service.
Stibnite Gold Project Permitting Background
A detailed presentation on the PRO can be found at www.midasgoldcorp.com. Details of previous news releases and technical studies can be found filed under Midas Gold’s profile on SEDAR (www.sedar.com) or at www.midasgoldcorp.com.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Forward-Looking Information
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions, courses of action and business objectives. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “advance”, “create”, “benefit”, “intends” or variations of such words and phrases or statements that certain actions, events or results “completion”, “would”, “occur” or “be achieved”. Although Midas Gold has attempted to identify important factors that could affect Midas Gold and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. In making the forward-looking statements in this news release, Midas Gold has applied several material assumptions, including the assumption that general business and economic conditions will not change in a materially adverse manner. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Midas Gold does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
MIDAS GOLD CORP. FILES FINAL BASE SHELF PROSPECTUS
Filing of Shelf Prospectus provides future financial flexibility to advance the Stibnite Gold Project
VANCOUVER, BRITISH COLUMBIA – Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) (“Midas Gold” or the “Company”) today announced that it has now filed a final short form base shelf prospectus (the “Shelf Prospectus”) with the securities commissions in each of the provinces of Canada, except Quebec. This follows the completion of a regulatory review of the preliminary base shelf prospectus, the filing of which was reported on March 12, 2019.
The Shelf Prospectus will allow Midas Gold to offer and issue up to C$200 million of common shares, warrants, subscription receipts, units, debt securities, or any combination of such securities (collectively, the “Securities”) during the next 25-months. The Securities may be offered separately or together, in amounts, at prices and on terms to be determined based on market conditions at the time of sale, which would be set forth in a subsequently filed prospectus supplement.
The Company filed the Shelf Prospectus to provide future financial flexibility as it advances its flagship Stibnite Gold Project but has not determined whether or not to undertake an offering of Securities. As reported in its audited financial statements dated December 31, 2018, Midas Gold had cash on hand of US$29.9 million at year end.
Filing of Amended Technical Report
In connection with the Shelf Prospectus filings, the Company has filed an amended technical report entitled “Stibnite Gold Project, Prefeasibility Study Technical Report, Valley County, Idaho” dated effective December 8, 2014 and amended March 28, 2019 (the “PFS”). Amendments to the PFS include changes to: (i) clarify that the mineral resource estimate is consistent with the CIM Definition Standards adopted by the CIM Council on May 10, 2014 (with no resulting changes to the mineral resource estimate in the PFS); and (ii) remove the comparison of the 2012 preliminary economic assessment. Similar changes have been made to the investor presentation available on the Company’s website.
These documents are available under the Company’s profile on the SEDAR website (www.sedar.com).
The Securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Securities in any State or jurisdiction in which such offer, solicitation or sale would be unlawful.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Caution Regarding Forward Looking Information
This news release contains forward-looking statements regarding potential financings pursuant to the Shelf Prospectus; the filing of one or more prospectus supplements; and continued advancement of the Stibnite Gold Project. These forward-looking statements are provided as of the date of this news release, or the effective date of the documents referred to in this news release, as applicable, and reflect predictions, expectations or beliefs regarding future events based on the Company’s beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that regulatory approval of any shelf prospectus filings and related offerings will be obtained in a timely manner; that general economic and business conditions will not change in a materially adverse manner; and that the Company will be able to raise additional funds on reasonable terms. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but specifically include, without limitation, risks relating to: general market conditions; the Company’s ability to secure financing, on favourable terms, pursuant to the Shelf Prospectus and any prospectus supplements; and the additional risks described in the Shelf Prospectus and the Company’s latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR. The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
STATE & FEDERAL AGENCIES UPDATE PERMITTING SCHEDULE FOR MIDAS GOLD’S STIBNITE GOLD PROJECT
Record of Decision for Proposed Stibnite Gold Project Expected in Late Q4 2020
VANCOUVER, BRITISH COLUMBIA – Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) today announced that it has been advised that the United States Forest Service (“USFS”) anticipates issuing a Draft Environmental Impact Statement (“Draft EIS”) for public comment in late Q4 2019, with a Final EIS and Draft Record of Decision (“ROD”) anticipated in Q3 2020 for the Stibnite Gold Project (“Project”). This schedule would put the Final ROD for the Project in late Q4 2020 and incorporates the impacts the partial shutdown of the federal government and additional modeling of alternatives requested by the regulators. The USFS, in cooperation with the six other federal, state and local agencies responsible for the permitting schedule, provided the updated timeline as part of its quarterly update on the Project, which is located in Valley County, 39 miles east of McCall and 14 miles from Yellow Pine, Idaho.
“Our goal is to help ensure the permitting agencies are prepared and able to present a robust and thorough analysis of the Stibnite Gold Project to the public,” said Stephen Quin, President & CEO of Midas Gold Corp. “The partial government shut down that ended earlier in 2019, combined with additional modeling of alternatives for the Draft EIS, have slowed the process but should allow for the Draft EIS to be shared with the public at the end of 2019.” In its news release of January 29, 2019, Midas Gold had already accommodated some of these potential delays in its schedule update released on that date but had cautioned that the impacts of the partial government shutdown could not be determined at that time.
Many Idaho leaders are closely following the Project and changes to the timeline, including Idaho’s First Congressional District Congressman Russ Fulcher, in whose district the Project lies. “One of my goals in Congress is to bring new jobs and opportunities to rural Idahoans,” said Rep. Russ Fulcher. “The Stibnite Gold Project proposes new high paying jobs while also cleaning up a brownfield site and other legacy impacts from the Second World War. We need regulators to do their jobs, but we also need permits to move forward. I am disappointed by the recent announcement of additional delay. We need the project to stay on a reliable timeline and for the Stibnite Gold Project to become a reality.”
Joint Review Process
Seven federal, state and local agencies involved in permitting the Project signed the Stibnite Joint Review Process Memorandum of Understanding (“MOU”) in 2017, committing to work together to evaluate the Plan of Restoration and Operations (“PRO”) for the Stibnite Gold Project under the National Environmental Policy Act (“NEPA”). The MOU was designed so agencies could collaborate in the review and preparation of the EIS, meet the requirements of the public process and follow a mutually agreed upon schedule. Agency cooperation and collaboration remains key to the timeliness and completeness of the process.
Updated Schedule
The PRO was accepted as complete by the USFS in December 2016, and the USFS submitted a Notice of Intent to initiate review of the Project and then conducted Public Scoping in June and July of 2017. Since that time, the USFS, their contractor AECOM, and other cooperating agencies have continued with their review of the PRO, baseline data, public comments, defining potential alternatives and analyzing them, and reviewing additional information they requested and which Midas Gold has provided. As noted above, the USFS recently advised Midas Gold they anticipate issuing a Draft EIS for public comment in late Q4 2019 with the target date of an approved Final ROD in late Q4 2020.
Regulators need to ensure that they meet the regulatory requirements to support a robust and defensible Record of Decision. They have been requesting additional data, evaluating the thoroughness of the environmental impact analysis, while ensuring alternative development scenarios are carefully considered. Midas Gold has received 116 requests for additional information (“RFAI”) and has provided the requested information to all but two of the RFAIs issued to date. The updated schedule reflects a number of adjustments to both the baseline analysis, water modeling and alternatives development processes in order to accommodate thorough and comprehensive evaluations of the information provided in response to RFAIs, as well as conduct additional analysis and evaluation of alternatives.
“The partial government shutdown unfortunately extended the schedule and the request for more modeling of alternatives has had additional impacts on the schedule. While we appreciate the need of each of the agencies involved in the Stibnite Joint Review Process to thoroughly evaluate the Project and various alternatives, we nevertheless look forward to completing this phase of the permitting process as soon as practicable and putting a solid Draft EIS out to the public for review,” said Laurel Sayer, President and CEO of Midas Gold Idaho, Inc., the Project operator. “The Stibnite Gold Project has the potential to bring hundreds of well-paying jobs to rural Idaho, hundreds of millions of dollars of investment into the state and restore fish passage and fish habitat, as well as address numerous legacy impacts on water quality related to historical mining activities. We want to bring all of these benefits to Idaho, which is why we are excited to continue moving the Project forward.” Most of the legacy impacts at site occurred during World War II, when the site was a critical supplier of strategic metals needed for the war effort, and well before environmental legislation existed. Notwithstanding that it is not responsible for the site’s legacy impacts, Midas Gold’s plan of restoration and operations takes a comprehensive view of what it will take to restore and redevelop the site and leave behind a functional ecosystem fully and permanently supportive of enhanced fish populations and cleaner water.
Next Steps in the Regulatory Process
The USFS, on behalf of the various regulatory agencies, is currently completing the alternatives assessment and environmental analysis as required by NEPA. This is the core of the review process and will provide the basis for drafting of the Draft EIS, which is currently being prepared.
The next opportunity for public review and comment will come when the agencies release the Draft EIS, which is currently anticipated to take place late Q4 2019, with a public comment period anticipated to run from late 2019 into early 2020. After the comment period, the USFS and cooperating agencies would produce the Final EIS and a Draft ROD as well as respond to public comments received on the Draft EIS. Upon publication of the Final EIS, there would be a short period for objections and resolution before a Final ROD is published. A positive final decision would allow Midas Gold to seek the issuance of the final permits that are dependent on the ROD being issued.
Sustainability Report
In March 2019, Midas Gold Idaho released its 2018 Sustainability Report. This annual report highlights Midas Gold’s community and environmental achievements and can be found digitally at www.midasreport.com. Along with planting over 3,000 trees and volunteering over 3,000 hours in the community, the report provides details of Midas Gold’s evaluation of, and commitment to, mitigating light pollution in support of central Idaho’s dark skies reserve.
Community Engagement
In parallel with the formal NEPA process, Midas Gold is continuing its extensive community and stakeholder engagement process, which has been underway for several years. In late 2018 and early 2019, eight community and county governments near the Project commenced collaborative engagement with Midas Gold through the Stibnite Advisory Council, which was established under a community agreement. The Stibnite Advisory Council holds monthly meetings to discuss aspects of the project and community needs. Midas Gold has also established the Stibnite Foundation and funded the first contribution of $100,000 as an obligation identified in the Community Agreement.
Feasibility Study Status
Midas Gold’s technical team and consultants continue to advance their work on a feasibility study for the Stibnite Gold Project. The timing for completion of the feasibility study is tied to the completion of the Draft EIS since the feasibility study needs to reflect the design and layout of the Project as defined in the Draft EIS. While substantially all of the work related to mineral resource estimation, metallurgy, geotechnical, infrastructure (including road access, powerline, tunnel design) and other aspects of the Project needed to support a feasibility study is well advanced, finalization of the design and estimating of capital and operating costs and the actual feasibility study are awaiting decisions driven by the permitting process.
As previously noted, the feasibility study looks to incorporate the results of a number of Project optimizations, including updated mineral resource estimates, results of optimized metallurgy and processing, optimized layout and plant design, and other considerations. A number of these optimizations are focused on reducing potential environmental effects and impacts from mine redevelopment, and to enhancing the restoration of the site to ensure a healthy, sustainable ecosystem during and after operations. The extended permitting schedule does provide the opportunity to undertake certain value engineering exercises, where deemed appropriate, and include the results of such evaluations in the feasibility study.
Stibnite Gold Project Permitting Background
A detailed presentation on the PRO can be found at www.midasgoldcorp.com. Details of previous news releases and technical studies can be found filed under Midas Gold’s profile on SEDAR (www.sedar.com) or at www.midasgoldcorp.com.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Forward-Looking Information
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, next steps and courses of action including actions to be taken by the U.S. Forest Service, the State of Idaho and other government agencies and regulatory bodies. In certain cases, Forward-Looking Information can be identified by the use of words and phrases or variations of such words and phrases or statements such as “anticipates”, “complete”, “comprehensive”, “defensible”, “ensure”, “potential” and “robust”, in relation to certain actions, events or results “could”, “may”, “will”, “would”, be achieved. In preparing the Forward-Looking Information in this news release, Midas Gold has applied several material assumptions, including, but not limited to, assumptions that the current objectives concerning the Stibnite Gold Project can be achieved and that its other corporate activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner; that the formal review process under the NEPA (including a joint review process involving the U.S. Forest Services, the State of Idaho and other agencies and regulatory bodies) as well as the public comment period and EIS will proceed in a timely manner and as expected; and that all requisite information will be available in a timely manner. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Midas Gold to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, changes in laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may result in unforeseen results in the review process under the NEPA; uncertainty surrounding input to be received pursuant to the public comment period; risks related to dependence on key personnel; risks related to unforeseen delays in the review process including availability of personnel from the US Forest Services, State of Idaho and other agencies and regulatory bodies (including, but not limited to, future US government shutdowns); risks related to opposition to the Project, as well as those factors discussed in Midas Gold’s public disclosure record. Although Midas Gold has attempted to identify important factors that could affect Midas Gold and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Midas Gold does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
MIDAS GOLD CORP. AMENDS INVESTOR RIGHTS AGREEMENT WITH BARRICK GOLD
Barrick commits to provide lead order and fund up to US$5 million
VANCOUVER, BRITISH COLUMBIA – Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) (“Midas Gold” or the “Company”) today announced that it has amended the investor rights agreement dated May 16, 2018 (“IRA”) entered into with Barrick Gold Corporation (“Barrick”) in conjunction with Barrick’s US$38 million investment in Midas Gold completed in May 2018. These amendments were made at Midas Gold’s request and are designed to increase financing flexibility and options for Midas Gold, including a commitment by Barrick to provide a lead order.
“As we continue to advance the Stibnite Gold Project through completion of a feasibility study and regulatory approval of our plan for the restoration and redevelopment of this brownfields site, Barrick’s investment and support has been instrumental in the progress we have made towards our goals,” said Stephen Quin, President & CEO of Midas Gold Corp. “We appreciate Barrick’s flexibility to accommodate our requested amendments to the terms of the IRA, and its willingness to commit to take its proportionate share of any future financing undertaken under the IRA, as amended.” As disclosed in its audited financial statements filed on SEDAR, at December 31, 2018 Midas Gold had a cash balance of US$29.9 million.
“Barrick is pleased to support Midas Gold as it advances its Stibnite Gold Project in Idaho through the permitting and feasibility process,” said Mark Bristow, President & CEO of Barrick Gold. Barrick currently owns approximately 19.744% of Midas Gold’s issued shares.
Amendments to the IRA include provision of a standby commitment from Barrick to fund up to an aggregate of US$5 million in respect of any future financing by Midas Gold that constitutes a “Permitted Offering” as defined in the IRA, subject to the terms and conditions of the amended IRA. The amendment to the IRA, which is subject to regulatory approval, will be filed under Midas Gold’s profile on SEDAR at www.sedar.com in accordance with applicable securities laws.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries, is focused on the exploration and, if warranted, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Caution Regarding Forward Looking Information
This news release contains forward-looking statements regarding potential financings contemplated in the IRA, as amended. These forward-looking statements are provided as of the date of this news release, or the effective date of the documents referred to in this news release, as applicable, and reflect predictions, expectations or beliefs regarding future events based on the Company’s beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that regulatory approval of the amendment to the IRA and any potential financing will be obtained in a timely manner; that general economic and business conditions will not change in a materially adverse manner; and that the Company will be able to raise additional funds on reasonable terms. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but specifically include, without limitation, risks relating to: general market conditions; the Company’s ability to secure additional financing on favourable terms; and the additional risks described in the Company’s latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR. The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
MIDAS GOLD CORP. FILES PRELIMINARY BASE SHELF PROSPECTUS
Shelf Prospectus increases flexibility and options for potential future financings
VANCOUVER, BRITISH COLUMBIA – Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) (“Midas Gold” or the “Company”) today announced that it filed a preliminary short form base shelf prospectus with the securities commissions in each of the provinces of Canada, except Quebec.
The base shelf prospectus (the “Shelf Prospectus”) has not yet become final for the purpose of the sale of any Securities. When final, the Shelf Prospectus would allow Midas Gold to offer and issue up to C$200 million of common shares, warrants, subscription receipts, units, debt securities, or any combination of such securities (collectively, the “Securities”) during the 25-month period that the Shelf Prospectus is effective. The Securities may be offered separately or together, in amounts, at prices and on terms to be determined based on market conditions at the time of sale, which would be set forth in a subsequently filed prospectus supplement.
The Company is filing this Shelf Prospectus to maintain financial flexibility as it advances its flagship Stibnite Gold Project but has not whether or not to undertake an offering of Securities.
The Securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Securities in any State or jurisdiction in which such offer, solicitation or sale would be unlawful.
A copy of the preliminary short form base shelf prospectus is available on SEDAR (www.sedar.com).
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Caution Regarding Forward Looking Information
This news release contains forward-looking statements regarding potential financings pursuant to the Shelf Prospectus; the filing of one or more prospectus supplements; and continued advancement of the Stibnite Gold Project. These forward-looking statements are provided as of the date of this news release, or the effective date of the documents referred to in this news release, as applicable, and reflect predictions, expectations or beliefs regarding future events based on the Company’s beliefs at the time the statements were made, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that regulatory approval of any shelf prospectus filings and related offerings will be obtained in a timely manner; that general economic and business conditions will not change in a materially adverse manner; and that the Company will be able to raise additional funds on reasonable terms. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but specifically include, without limitation, risks relating to: general market conditions; the Company’s ability to secure financing, on favourable terms, pursuant to the Shelf Prospectus and any prospectus supplements; and the additional risks described in the Shelf Prospectus and the Company’s latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR. The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
MIDAS GOLD REPORTS CHANGES TO ITS BOARD OF DIRECTORS
Jaimie Donovan to replace Mark Hill as Barrick Gold Nominee
VANCOUVER, BRITISH COLUMBIA – Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) (“Midas Gold” or the “Company”) today announced that it has appointed Jaimie Donovan to its Board of Directors, replacing Mark Hill, who resigned as Barrick’s representative from the Company’s Board.
“We welcome Ms. Donovan to the Board of Directors of Midas Gold and look forward to benefiting from her technical and capital markets expertise,” said Peter Nixon, Chairman of Midas Gold’s Board of Directors. “We also thank Mr. Hill for his contributions to the Board of Directors over the past year and wish him well with his new responsibilities for Barrick in Latin America and Australia.”
Additional Details
Jaimie Donovan is the Head of Growth and Evaluations for Barrick in North America, where she oversees the evaluation and development of regional investment opportunities. Prior to that Ms. Donovan held senior positions at Barrick Gold as Vice President of Evaluations, and Waterton Global Resource Management as a Principal and head of Evaluations. Ms. Donovan has over 18 years of experience in the mining industry spanning roles in Operations, Corporate Development and Capital Allocation. Ms. Donovan holds a Bachelor’s degree in Mining Engineering (B.Eng.) and a Bachelor’s degree in Commerce (B.Com. Finance) from the University of Western Australia.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
STATE & FEDERAL AGENCIES UPDATE PERMITTING SCHEDULE FOR MIDAS GOLD'S STIBNITE GOLD PROJECT
Record of Decision for Proposed Stibnite Gold Project Expected in Q3 2020
VANCOUVER, BRITISH COLUMBIA - Midas Gold Corp. (MAX:TSX / MDRPF:OTCQX) today announced that it has been advised that the United States Forest Service (“USFS”) anticipates issuing a Draft Environmental Impact Statement (“DEIS”) for public comment in Q3 2019, with a Final EIS and Draft Record of Decision (“ROD”) anticipated in Q2 2020 for the Stibnite Gold Project (“Project”). This schedule would put the Final ROD for the Project in Q3 2020. The USFS, in cooperation with the six other federal, state and local agencies responsible for the permitting schedule, provided the updated timeline as part of its quarterly update on the Project, which is located in Valley County, 39 miles east of McCall and 14 miles from Yellow Pine, Idaho.
“The quarterly schedule released by the USFS extends the timeframe to complete permitting in order to accommodate agency requests for additional information and analysis, including modelling of alternatives,” said Stephen Quin, President & CEO of Midas Gold Corp. “While the extended timeframe is disappointing, we believe that this additional time safeguards the successful completion of the permitting process and ensures the best plan moves forward towards a robust, defensible decision.” This extension recognizes all parties’ commitment to ensuring the analysis required under the National Environmental Policy Act (“NEPA”) is comprehensive, thoroughly considers all alternatives, and is complete before the Draft EIS is published and shared with the public later in 2019. The partial shutdown of the US Federal Government also affected the permitting schedule.
Joint Review Process
Seven federal, state and local agencies involved in permitting the Project signed the Stibnite Joint Review Process Memorandum of Understanding (“MOU”) in 2017, committing to work together to evaluate the Plan of Restoration and Operations (“PRO”) for the Stibnite Gold Project under the NEPA. The MOU was designed so agencies could collaborate in the review and preparation of the EIS, meet the requirements of the public process and follow a mutually agreed upon schedule. Agency cooperation and collaboration remains key to the timeliness of the process and is demonstrated by the numerous interagency meetings to address matters collaboratively.
Updated Schedule
The PRO was accepted as complete by the USFS in December 2016, and the USFS submitted a Notice of Intent to initiate review of the Project and then conducted Public Scoping in June and July of 2017. Since that time, the USFS, their contractor, AECOM, and other cooperating agencies have continued to make progress reviewing the PRO, baseline data, public comments, defining potential alternatives and analyzing them and reviewing additional information they requested, and Midas Gold provided. As noted above, the USFS recently advised Midas Gold they anticipate issuing a Draft EIS for public comment in Q3 2019 with the target date of an approved Final ROD in Q3 2020, although this schedule has and will be impacted by the partial shutdown of the US Government.
Regulators want to ensure they meet the regulatory requirements to support a robust and defensible Record of Decision. They are requesting additional data, evaluating the thoroughness of the environmental impact analysis, while ensuring alternative development scenarios are carefully considered. Midas Gold has received 115 requests for additional information (“RFAI”) and provided the requested information to all 115 RFAIs issued to date. The updated schedule reflects a number of adjustments to both the baseline analysis, water modelling and alternatives development processes in order to accommodate thorough and comprehensive evaluations of the information provided in response to RFAIs, as well as conduct additional analysis and evaluation of alternatives.
“We appreciate the need of each of the agencies involved in the Stibnite Joint Review Process to thoroughly evaluate the Project and alternatives. However, we look forward to completing this phase of the permitting process as soon as practicable and putting a solid Draft EIS out to the public for review,” said Laurel Sayer, CEO of Midas Gold Idaho, Inc., the Project operator. “The Stibnite Gold Project has the potential to bring hundreds of well-paying jobs to rural Idaho, hundreds of millions of dollars of investment into the state and restore a region that has experienced extensive impacts from historical mining-related activities. We want to bring all of these benefits to Idaho, which is why we are excited to continue moving the Project forward.”
Effects of the US Government Shutdown
The recently ended partial shutdown of the US Federal Government affected progress on permitting the Stibnite Gold Project, as certain personnel involved in the regulatory process for the Project were on furlough and unable to work on the Project. However, AECOM, the USFS’ third party contractor assisting with the review of the Project under NEPA, continued to work through the shutdown as their costs are paid by Midas Gold, as did some federal agencies that were not affected by the shutdown. State and local agencies were not affected by the shutdown. The recent ending of the shutdown is reported to be temporary in nature and the ultimate effects of the shutdown(s) cannot be determined at this time.
Next Steps in the Regulatory Process
The USFS, on behalf of the various regulatory agencies, is currently completing the alternatives assessment and environmental analysis as required by NEPA. This is the core of the review process and will provide the basis for drafting of the Draft EIS, which is currently being prepared.
The next opportunity for public review and comment will come when the agencies release the Draft EIS, which is currently anticipated to take place Q3 2019. After the comment period, the USFS and cooperating agencies would produce the Final EIS and a Draft ROD as well as respond to public comments received on the Draft EIS. Upon publication of the Final EIS, there would be a short period for objections and resolution before a Final ROD is published. A positive final decision would allow Midas Gold to seek the issuance of the final permits that are dependent on the ROD being issued.
Community Engagement
In parallel with the formal NEPA process, Midas Gold is continuing its extensive community and stakeholder engagement process, which has been underway for several years. At the end of November 2018, seven community and county governments near the Project signed a Community Agreement with Midas Gold. In January, one additional county also signed the Community Agreement while another deferred consideration until after the DEIS is published and Midas Gold withdrew a request for a tenth community to join the agreement to avoid any perception of a conflict of interest. The Community Agreement, involving eight local communities, creates a collaborative environment for local communities to work together with the Company to directly address concerns and opportunities with Midas Gold throughout the life of the project. Midas Gold also worked with these communities to establish the Stibnite Foundation in order to support community projects. The Stibnite Advisory Council, created under the Community Agreement, has been formed, has established its bylaws, appointed officers and has begun identifying priorities for the Council’s attention.
Feasibility Study Status
Midas Gold’s technical team and consultants continue to advance their work on a feasibility study for the Stibnite Gold Project. The timing for completion of the feasibility study is tied to the completion of the Draft EIS since the feasibility study needs to reflect the design and layout of the Project as defined in the Draft EIS. While substantially all of the work related to mineral resource estimation, metallurgy, geotechnical, infrastructure (including road access, powerline, tunnel design) and other aspects of the Project has been completed, and preliminary mine planning is well advanced, finalization of the design and estimating of capital and operating costs are awaiting decisions driven by the permitting process. The feasibility study looks to incorporate the results of a number of Project optimizations, including updated mineral resource estimates, results of optimized metallurgy and processing, optimized layout and plant design, and other considerations. A number of these optimizations are focused on reducing potential environmental effects and impacts from mine redevelopment, and to enhancing the restoration of the site to ensure a healthy, sustainable ecosystem during and after operations. The extended permitting schedule does provide the opportunity to advance designs of certain Project components further than would be typical for a feasibility study and include this more advanced information in the feasibility study. In addition, it also provides the opportunity to undertake certain value engineering exercises, where deemed appropriate, and also include the results of such evaluations in the feasibility study.
Stibnite Gold Project Permitting Background
A detailed presentation on the PRO can be found at www.midasgoldcorp.com. Details of previous news releases and technical studies can be found filed under Midas Gold’s profile on SEDAR (www.sedar.com) or at www.midasgoldcorp.com.
About Midas Gold and the Stibnite Gold Project
Midas Gold Corp., through its wholly owned subsidiaries are focused on the exploration and, if warranted, site restoration and development of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho that are encompassed by its Stibnite Gold Project.
Forward-Looking Information
Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, next steps and courses of action including actions to be taken by the U.S. Forest Service, the State of Idaho and other government agencies and regulatory bodies. In certain cases, Forward-Looking Information can be identified by the use of words and phrases or variations of such words and phrases or statements such as “anticipates”, “believes”, “complete”, “comprehensive”, “defensible”, “ensure”, “potential”, “robust”, “safeguard” and “successful” in relation to certain actions, events or results “could”, “may”, “will”, “would”, be achieved. In preparing the Forward-Looking Information in this news release, Midas Gold has applied several material assumptions, including, but not limited to, assumptions that the current objectives concerning the Stibnite Gold Project can be achieved and that its other corporate activities will proceed as expected; that general business and economic conditions will not change in a materially adverse manner; that the formal review process under the NEPA (including a joint review process involving the U.S. Forest Services, the State of Idaho and other agencies and regulatory bodies) as well as the public comment period and EIS will proceed in a timely manner and as expected; and that all requisite information will be available in a timely manner. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Midas Gold to be materially different from any future results, performance or achievements expressed or implied by the Forward-Looking Information. Such risks and other factors include, among others, changes in laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may result in unforeseen results in the review process under the NEPA; uncertainty surrounding input to be received pursuant to the public comment period; risks related to dependence on key personnel; risks related to unforeseen delays in the review process including availability of personnel from the US Forest Services, State of Idaho and other agencies and regulatory bodies (including, but not limited to, future US government shutdowns); risks related to opposition to the Project, as well as those factors discussed in Midas Gold’s public disclosure record. Although Midas Gold has attempted to identify important factors that could affect Midas Gold and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Midas Gold does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
MIDAS REPORTS SIGNIFICANT GOLD INTERCEPTS AT HANGAR FLATS, GOLDEN MEADOWS PROJECT, IDAHO
Hole MGI-10-12 intersected 4.1g/t gold over 36.6m, including 7.4g/t gold over 16.5m
Hole MGI-10-13 intersected 2.6g/t gold over 70.3m plus 2.1g/t gold over 42.7m
Hole MGI-10-26 intercepted 2.4g/t gold over 176.8m plus 1.8g/t gold over 68.6m
Hole MGI-10-27 intercepted 2.5g/t gold over 117.0m
VANCOUVER, BRITISH COLUMBIA - Midas Gold, Inc. (a private company) today announced assay results from its core drilling program on the Hangar Flats deposit at the Company’s Golden Meadows Project, Idaho. A total of twenty-six drill holes were completed at Hangar Flats during the summer and fall of 2010 as part of its resource definition and exploration drill program that was designed to develop a mineral resource estimate to a level suitable for reporting under Canadian National Instrument 43-101 Technical Reporting guidelines, the results of which will be announced during Q1/11. Hangar Flats is a high grade gold-silver-antimony-tungsten discovery made in 2009 by Midas Gold and these most recent drill intercepts are step outs and infill holes from the 2009 discovery holes. Highlights of assays from these recent drill holes are summarized in the table below and the full results for the twenty-six holes released today, as well as results from our eleven-hole 2009 drill program, are provided in the attached table.
Highlights of 2010 Drilling at Hangar Flats
| Hole ID | Target Area | From (m) | To (m) | Interval (m)* | Gold (g/t) |
|---|---|---|---|---|---|
| MGI-10-12 | Hangar Flats | 72.2 | 108.8 | 36.6 | 4.08 |
| Including | 74.1 | 90.5 | 16.5 | 7.36 | |
| MGI-10-13 | Hangar Flats | 73.2 | 143.4 | 70.3 | 2.60 |
| And | 162.5 | 205.1 | 42.7 | 2.06 | |
| And | 213.4 | 220.8 | 7.5 | 1.27 | |
| And | 227.1 | 228.0 | 0.9 | 8.66 | |
| MGI-10-26 | Hangar Flats | 10.7 | 187.5 | 176.8 | 2.43 |
| Including | 126.5 | 134.1 | 7.6 | 7.09 | |
| And | 195.1 | 263.7 | 68.6 | 1.82 | |
| MGI-10-27 | Hangar Flats | 26.2 | 143.3 | 117.0 | 2.50 |
| Including | 75.6 | 89.3 | 13.7 | 6.23 |
* Based upon the current 3D interpretation of the Hangar Flats deposit the intervals quoted here are at or near true thickness and are composited using a 0.5 g/t cutoff and may include short intervals of internal waste below the cutoff grade. Reported intervals may not correspond precisely to the ‘From’ and ‘To’ due to rounding.
“Hangar Flats has rapidly advanced from a small historical mineral occurrence, to a major drilled discovery, through an initial round of exploration drilling, and in-filled to standards suitable for formal resource estimation, all in less than two years,” said Stephen Quin, President and CEO of Midas Gold. “With drilling now complete, an updated mineral resource estimate is underway and will be released in the near future. Hangar Flats is one of three significant gold deposits in the Golden Meadows project area, in addition to numerous other gold occurrences similar in scale to Hangar Flats prior to the 2009- 10 drilling, suggesting significant additional gold potential at Golden Meadows.”
These drill results, along with those from previous drilling, indicate that the Hangar Flats deposit comprises a series of stacked ellipsoidal lenses, with best grades and thicknesses near the trace of the Meadow Creek Fault System, a major district-scale ore controlling structure. The thick, higher grade intercepts reported above and in the table attached are from the core of the deposit, while the narrower, lower grade intercepts in the table attached are from the margins of the deposit. A new resource model for Hangar Flats will be completed in Q1/11.
For current drill hole locations, please view the accompanying maps and section.
2010 Exploration Program at Golden Meadows
The drilling at Hangar Flats was undertaken as part of a forty-four hole, 12,893m drill program completed in 2010 by Midas Gold Inc., which program focused on the Hangar Flats and West End areas. All drilling was undertaken with HQ core drilling, with core logged and sawn in half on site, and samples sent offsite for assay.
About the Golden Meadows Project
The Golden Meadows Project encompasses most of the historic Stibnite-Yellow Pine Mining District in South-central Idaho where Midas Gold, Inc. (a private company), owns or controls over 4,000 hectares in the district and recently entered into a letter of intent with Vista Gold Corp. to combine Vista’s Yellow Pine deposit, which Vista has reported as containing significant gold mineral resources in the Golden Meadows project area, with Midas Gold’s interests, in a new company (“Newco”). As a result, Vista will become a 35% shareholder of Newco.
The Stibnite-Yellow Pine district lies at the intersection of major, regional fault systems and lies on the margins of the western ring fractured margin of the Tertiary Thunder Mountain caldera complex. Gold mineralization within the Golden Meadows Project appears to be an intrusion related, gold-rich system overprinted by a younger, epithermal gold system with increased silver and antimony. Historic gold production of approximately one million ounces from the district came primarily from high grade underground gold-antimony production immediately north of Hangar Flats from 1928-38, open pit mining at Yellow Pine from 1938-52, or from heap leaching of oxide gold occurrences, including West End and Homestake, from 1974 to 1997. The deeper sulphide gold potential has seen little attention in modern exploration. The principal gold deposits identified to date within the Golden Meadows Project are Hangar Flats and West End, along with Vista’s Yellow Pine deposits, all associated with significant structural corridors. In addition, numerous other smaller gold occurrences have been identified, some of which have historic gold resource estimates, and which remain to be explored for their deeper sulphide potential.
For further information about Midas Gold, Inc., please contact: Investor Relations at (509) 927-GOLD (4653) or e-mail Midas at info@midasgoldinc.com
Quality Assurance
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President and CEO of Midas Gold, Inc. The exploration activities at the Hangar Flats deposit were carried out under the supervision of Christopher Dail, C.P.G., Qualified Person and Project Manager for the Golden Meadows Project.
Gold is analyzed by fire assay fusion with 30g charges with an atomic absorption spectroscopy or gravimetric finish for gold. Analyses are carried out by ALS CHEMEX in their Reno and Winnemucca, Nevada laboratories. Blank and standard samples are used for quality assurance and quality control. After the completion of the drilling programs, random check assays were analyzed at Inspectorate and American Assay Laboratories in Reno, Nevada.
Forward-Looking Statements
This document may contain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this document and Midas Gold, Inc. (the “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward- looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Cautionary Note - The United States Securities and Exchange Commission (“SEC”) permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Midas Gold uses certain terms such as “measured”, “indicated”, “inferred”, and “mineral resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. However, Midas Gold is not an SEC registered company. This press release is NOT for U.S. distribution and is not a solicitation or a prospectus for stock.
MIDAS GOLD ANNOUNCES APPOINTMENT OF STEPHEN P. QUIN AS PRESIDENT & CEO
Spokane, Washington - Midas Gold Inc. (a private company) today announced the appointment of Stephen P. Quin, P.Geo., as President and Chief Executive Officer of Midas Gold, effective January 1, 2011.
“Stephen Quin brings a wealth of experience to Midas Gold,” said Frank Duval, retiring President of Midas Gold, Inc. “Mr. Quin’s experience in exploration, feasibility studies, permitting and project finance, as well as mine development and operations, positions Midas Gold to comprehensively and rapidly advance its Golden Meadows project located in the Yellow Pine - Stibnite gold district of Idaho.”
“I am excited to be joining Midas Gold at this critical juncture in its history,” said Stephen Quin, President & CEO of Midas Gold, Inc. “The consolidation of the Yellow Pine - Stibnite district as its Golden Meadows project represents a tremendous opportunity for value creation for the shareholders of Midas Gold, new and old. Not only are there significant gold mineral resources already defined, but there is exceptional exploration potential as a result of the historic fragmented ownership of the district that prevented its efficient and effective exploration. Now that the district is on the verge of being consolidated under one roof for the first time since gold was first discovered in the early 1900’s, exploration can proceed unconstrained by artificial property boundaries. Further, the significant sulphide potential below the traditional oxide gold targets represents a vast, largely untested, gold target. Continuing on the heels of two highly successful drilling programs in 2009 and 2010, we are currently planning our 2011 campaign, which will further evaluate the potential of the Golden Meadows project,” stated Mr. Quin. “At this transition point for the Company, I would like to also acknowledge the considerable effort put forward by Frank Duval and his team over the preceding years to effect the successful consolidation of the district, the compilation of many years of historic mining and exploration data, and two years of exploration that have considerably expanded the gold potential in the district.”
Biography for Stephen Quin
Prior to joining Midas Gold, Mr. Quin was President of Capstone Mining Corp., an intermediate copper producer with mines in Canada and Mexico.
In 2005, Mr. Quin co-founded Sherwood Copper Corporation and was appointed President & CEO. Under his leadership, Sherwood acquired the Minto exploration project and advanced it through feasibility and into production in 2007, on time and on budget, and subsequently doubled mill capacity and mineral resources. In early 2008, Mr. Quin led the acquisition of the high grade Kutcho copper-zinc deposit for Sherwood, currently the subject of an on-going prefeasibility study. In late 2008, Mr. Quin steered Sherwood through the combination with Capstone Mining, owner and operator of the Cozamin mine in Mexico. On completion of the merger, Mr. Quin assumed the role of President & COO of Capstone, which now has a market capitalization of approximately C$900 million.
From 1987 to 2005, Mr. Quin was a senior executive with Miramar Mining Corporation, where he co- led the acquisition and directed the exploration of the Con Mine and, subsequently, the Hope Bay project in Canada; Hope Bay became one of the largest high grade gold deposits in Canada. Miramar was acquired for approximately $1.3 billion by Newmont Canada in 2007. From 1994 to 2000, Mr. Quin was a senior executive with Northern Orion Exploration Ltd., an affiliate of Miramar, where he led the acquisition and subsequent exploration of the Agua Rica copper-gold-molybdenum porphyry in Argentina in a joint venture with BHP, as well as the San Jorge copper-gold project in Argentina.
Mr. Quin graduated with a B.Sc. (Honours) in Mining Geology from the Royal School of Mines, London, England in 1980. He is a Professional Geoscientist registered with the Association of Professional Engineers and Geoscientists of British Columbia, a Fellow with the Geologic Association of Canada and Society of Economic Geologists, a Member of the Canadian Institute of Mining & Metallurgy and the Institute of Materials, Minerals and Mining (UK). Mr. Quin also serves on the board of a number of publicly listed mining companies and industry associations.
About Midas Gold
Midas Gold is a private company that controls the majority of the Yellow Pine - Stibnite district in Idaho, a district that encompasses a number of historic past producing mines, as well as significant mineral resources. Additional details regarding Midas Gold’s mineral resources at Golden Meadows will be announced shortly. On December 7, 2010, Vista Gold Corp. (TSX & NYSE Amex Equities: VGZ) announced that it had entered into a letter of intent to combine Vista’s Yellow Pine deposit, which Vista has reported as containing significant gold mineral resources in the Golden Meadows project area, with Midas Gold’s interests, in a new company (“Newco”). As a result, Vista will become a 35% shareholder of Newco. Mr. Quin will continue as President & CEO of Newco when this combination is completed.
Additional information on Midas Gold, Newco and its Golden Meadows project will be released over the coming months.
Forward Looking Information
This new release contains forward-looking statements within the meaning thereof under the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning thereof under Canadian securities laws. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that Midas Gold expects or anticipates will or may occur in the future, including such things as, estimates of mineral resources, the conversion of inferred mineral resources to measured and indicated resources, the conversion of mineral resources to mineral reserves, the potential to expand the resource base at the Golden Meadows project, the timing for completion and expected results of NI43-101 resource estimates by Midas Gold relating to its properties within the Golden Meadows project, potential gold resources at Vista’s Yellow Pine gold project, the entering into a definitive agreement with Midas Gold, the timing for the completion of the definitive agreement and completion of the proposed transaction between Midas Gold and Vista, and other such matters are forward-looking statements and forward-looking information. When used in this press release, the words “optimistic”, “potential”, “indicate”, “expect”, “intend”, “hopes”, “believe”, “may”, “will”, “could”, “if”, “anticipate,” “when”, and similar expressions are intended to identify forward-looking statements and forward-looking information. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Midas Gold to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, negotiating a satisfactory definitive agreement and other related documentation, timing for completing the definitive agreement, the combination and transactions contemplated thereunder, obtaining board and regulatory approvals; tax consequences of the proposed combination; the ability to integrate the operations of Newco; uncertainty of mineral resource estimates; estimates of results based on such mineral resource estimates; risks relating to cost increases for capital and operating costs; risks relating to delays in the completion of future drilling programs; risks related to the adequacy of the design of such drilling programs, risks related to the ability to obtain the necessary permits; risks of shortages and fluctuating costs of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; potential effects on Midas Gold’ operations of environmental regulations in the areas in which it operates; and risks due to legal proceedings. Although Midas Gold has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Except as required by law, Midas Gold assumes no obligation to update any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.
Quality Assurance & Regulatory Compliance
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President & CEO of Midas Gold Inc.
Some of the mineral resources at Golden Meadows are categorized as indicated and some as inferred mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.
Cautionary Note - The United States Securities and Exchange Commission (“SEC”) permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Midas Gold uses certain terms such as “measured”, “indicated”, “inferred”, and “mineral resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. However, Midas Gold is not an SEC registered company.