News private placement VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 7, 2014) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Midas Gold Corp. (TSX:MAX)(OTCQX:MDRPF) today announced that it has closed the second and final tranche (the "Second Tranche") of its previously announced non-brokered private placement financing (the "Financing") of units (the "Units") at a price of C$0.90 per Unit.
Midas Gold issued a total of 990,000 additional Units under the Second Tranche, generating additional gross proceeds of approximately C$0.9 million. Each Unit is comprised of one common share in the capital of the Company (a "Share") and one-half of one common share purchase warrant (each whole common share purchase warrant (a "Warrant") of the Company. Each Warrant entitles the holder to acquire one additional common share of Midas Gold (a "Warrant Share") at a price per Warrant Share of C$1.20 until March 7, 2016.
Midas Gold issued an aggregate of 14,167,621 Units, generating gross proceeds of approximately C$12.8 million under both tranches of the Financing (please refer to Midas Gold's press release dated March 4, 2014 for details of the first tranche of the Financing).
In connection with the closing of the Second Tranche and in consideration for arranging a portion of the Financing, the Company paid finder's fees to certain arm's length parties consisting of: (i) a cash commission in the aggregate amount of $35,550; and (ii) a total of 39,500 finder's options ("Finder's Options"). Each Finder's Option entitles the holder to acquire one Unit at a price per Unit of C$0.99 until March 7, 2016.
The Shares, Warrants and any Warrant Shares exercised upon exercise of the Warrants, and Finder's Options and any securities issued upon exercise thereof pursuant to the Second Tranche, are subject to a hold period and may not be traded until July 8, 2014 except as permitted by applicable securities legislation and the rules and policies of the Toronto Stock Exchange.
The Company intends to use the net proceeds of the Financing for the exploration and development of its Golden Meadows Project in central Idaho, and for general working capital purposes. The aggregate net proceeds of the Financing are estimated to bring the Company's current cash balance to approximately C$25.0 million, which is currently anticipated to be sufficient to fund the Company's activities, including the on-going exploration and evaluation of the Golden Meadows Project and general working capital, into 2016.