Midas Gold Corp. Announces Bought Deal
Midas Gold Corp. Announces Bought Deal
Public Offering
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./
VANCOUVER
,
June 10, 2019
/CNW/ - 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.
Facebook:
www.facebook.com/midasgoldidaho
Twitter: @MidasIdaho
Website:
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.
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.
SOURCE
Midas Gold Corp.
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http://www.newswire.ca/en/releases/archive/June2019/10/c1333.html
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For further information:
about Midas Gold Corp., please contact: Liz Monger -- Manager, Investor
Relations, (t): 778.724.4704, (e): [email protected]
CO: Midas Gold Corp.
CNW 16:58e 10-JUN-19