Midas Gold (TSX: T.MAX, Stock Forum) late Tuesday said it and its subsidiaries have entered into a US$15.0 million transaction with Franco-Nevada and one of its subsidiaries, whereby the Midas Group has agreed to sell certain rights to a royalty on future gold production from the Golden Meadows Project in Idaho, this according to a company news release.
Franco-Nevada will receive a perpetual 1.7% net smelter returns (NSR) royalty on any future gold production from the Golden Meadows and will purchase two million warrants for $350,000, which are exercisable into shares of Midas Gold at an exercise price of $1.23 per share for a period of 10 years from the date of issuance.
Midas Gold added that it intends to use the proceeds of the transactions to fund on-going mineral resource evaluation, metallurgical, engineering design, and environmental baseline data collection and evaluation at the Golden Meadows Project with a view to completing a prefeasibility study.