Barrick Gold will acquire 19.9% of Midas Gold for more than $38 million. Midas Gold’s Stibnite gold project in Idaho offers the company a strong investment opportunity with low geopolitical risk, potential for production of more than 300,000 ounces per year (oz/y) of gold, and exploration upside, said Barrick President Kelvin Dushnisky.
“We are also impressed with the emphasis that Midas Gold has placed on building partnerships with local communities and share their strong commitment to environmental stewardship,” Dushnisky said. “We look forward to working with the Midas Gold team to explore opportunities to enhance the value of the project for all partners.”
Part of the transaction is expected to close on or about May 15, and as long as Barrick maintains a minimum of 10% ownership in Midas Gold, it will be granted the right to appoint one director to Midas Gold board; a right to participate in future Midas Gold equity issuances; and a right of first refusal with respect to gold concentrates. In addition, Midas Gold will be increasing the number of directors on its board from seven to eight and will be appointing an independent director to fill that position.
Midas Gold said it will use the proceeds to advance its Stibnite gold project through to completion of a feasibility study and permitting of the project for redevelopment and restoration. During the past five years, the company has conducted extensive, multiyear environmental baseline programs to determine and define existing environmental conditions at this brownfields site, while reaching out to communities of interest for their views and perspectives regarding a future for the Stibnite gold project site and the local area.
“With our detailed plan for site restoration and protection of the environment, a large, long-life and low-cost operation, and a comprehensive proposal for the closure and reclamation of the site, Midas Gold is positioned to complete the critical milestones of feasibility study and permitting,” said Stephen Quin, president and CEO of Midas Gold. “Barrick shares Midas Gold’s vision for the restoration of the site and focus on community engagement. We believe Barrick’s extensive expertise and its core values, focused on environmental sustainability, make us natural partners.”
Midas Gold has focused on the remediation and repair of the historical disturbance at the site during the construction and operating periods, incorporating concurrent reclamation and minimizing new disturbance. Midas Gold’s goal is to protect the environment and provide stable and secure features that will serve as the foundation for a long‐term productive and naturally sustainable ecosystem that incorporates permanent fish passage through the area for the first time since the 1930s.