IDAHO – Barrick Gold of Toronto has agreed to invest at least $38 million (all figures U.S. dollars) in Midas Gold Corp. of Vancouver. Midas’s principle asset is the advanced Stibnite gold project 64 km east of McCall.
Midas’ plan for the Stibnite project includes restoring areas abandoned after decades of historic mining. (Image: Midas Gold Corp.)
Barrick has subscribed to acquire approximately 46.6 million Midas shares at a price of $0.82 per share. The transaction is expected to close on or about May 15, 2018. Barrick will be given a seat on the Midas board and first refusal in respect of gold concentrates, among other considerations.
Midas had a preliminary feasibility study done for Stibnite in 2014. The project could produce over 300,000 oz. of gold annually. Life of mine cash costs are estimated to be $568. The project has an after tax net present value of $832 million and an internal rate of return of 19.3%. A feasibility study is currently underway.
The resource estimate was updated in February this year. There are 104.9 million tonnes grading 1.66 g/t gold and 2.53 g/t silver and 0.09% antimony. The inferred resource is 23.2 million tonnes at 1.29 g/t gold, 2.04 g/t silver and 0.04% antimony. There are three separate deposits on the Stibnite property and a historic tailings area that might be reprocessed.
Details of the Stibnite gold project are available at www.MidasGoldCorp.com.