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Midas Gold announces US$35 million private placement

Transaction Details

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On February 27, 2020 Midas Gold Corp. (TSX:MAX) (“Midas Gold” or the “Company”) has announced a US$35 million private placement in support of its continued permitting and feasibility work on the Stibnite Gold Project, Idaho.

Midas Gold has entered into a binding term sheet with Paulson & Co. Inc. (“Paulson”), on behalf of the several investment funds and accounts managed by it, pursuant to which Paulson will purchase Canadian dollar denominated 0.05% senior unsecured convertible notes (the “Notes”) to be issued by a wholly owned subsidiary of Midas (the “Issuer”) on a private placement basis for gross proceeds of a minimum US$25 million (the “Note Offering”) and up to a maximum of US$35 million.

In addition, Midas Gold and the Issuer have entered into an agreement with BMO Capital Markets and Sprott Capital Partners LP (as co-lead agents) and a syndicate of agents including Cormark Securities Inc. and Haywood Securities Inc. in connection with a best efforts brokered private placement of Notes and/or common shares of the Company at a price of C$0.53 per share on a private placement basis (the “Brokered Offering” and, together with the Note Offering, the “Offering”) for total gross proceeds of up to US$10 million.

The Special Committee retained the services of Fort Capital Partners as its independent financial advisor to review the terms and conditions of the Notes to the Company, consider available financing alternatives and recommend the best financing alternative available to the Company, and to provide a fairness opinion in connection with the recommended alternative.