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
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
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR
DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
VANCOUVER, British Columbia, 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.
For further information about Midas Gold Corp., please contact:
Liz Monger -- Manager, Investor Relations (t): 778.724.4704
(e): [email protected]
Facebook: www.facebook.com/midasgoldidaho Twitter: @MidasIdaho
Website: www.midasgoldcorp.com
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.