Company sells units with half-share warrants at C$0.42 apiece in deal
By Devika Patel
Knoxville, Tenn., April 29 – Midas Gold Corp. said it has arranged an C$8.04 million private placement of units.
The company will sell units of one common share and a half-share warrant at C$0.42 per unit.
Each whole warrant will be exercisable at C$0.60 for two years. The strike price reflects a 27.66% premium to the April 28 closing share price of C$0.47.
Of the proceeds, C$5.04 million will be raised on a best-efforts basis by a syndicate of agents led by Haywood Securities Inc. and C$3 million will be raised on a non-brokered basis. The agents have a C$1 million greenshoe.
Settlement is expected May 20.
Proceeds will be used to advance the Stibnite Gold Project and for working capital and general corporate purposes.
Based in Vancouver, B.C., Midas Gold controls a number of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of Idaho.
| Issuer: | Midas Gold Corp.
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| Issue: | Units of one common share and a half-share warrant
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| Amount: | C$8.04 million
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| Greenshoe: | C$1 million (via agents)
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| Price: | C$0.42
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.60
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| Agent: | Haywood Securities Inc. (lead, for C$5.04 million), non-brokered (for C$3 million)
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| Pricing date: | April 29
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| Settlement date: | May 20
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| Stock symbol: | Toronto: MAX
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| Stock price: | C$0.47 at close April 28
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| Market capitalization: | C$61.64 million
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