Midway Secures Financing - $ 10.5M USD Midway Secures Financing for Pan Mine and Provides Update of Operations (nlk)
Midway Secures Financing for Pan Mine and Provides Update of Operations
Denver, Colorado (FSCwire) - Midway Gold Corp. announces that a subordinated debt financing in the amount of US$10.5 million has been closed with Hale Capital Partners (“Hale”). The financing will provide working capital during ramp up of gold production at Pan Mine in Nevada.
Bill Zisch, President and CEO of Midway stated, “We are appreciative of the financial support that has been provided by a key investor, Hale Capital. With this support we will continue to work diligently to complete commissioning of the Pan Mine.”
SUBORDINATED LOAN FACILITY
- On April 17, 2015 we closed a subordinated loan facility with Hale for US$10.5 million with a maturity date of September 30, 2017 that can be used for general corporate purposes. An initial draw of US$3.85 million was made at closing.
- An independent committee of the Board of Directors negotiated and approved the terms of the loan.
- The loan includes a 2% origination fee and bears interest at 13.5% per annum.
- The undrawn commitment is subject to a commitment fee of 5% per annum through the loan availability period of September 30, 2015.
- There are customary conditions precedent and post-closing obligations that must be met in order to make future loan draws.
- Documentation regarding the facility will be filed on SEDAR and EDGAR.
OPERATIONS UPDATE
We recently completed a 35-hole, (13,000 foot), in-fill, reverse-circulation drill campaign to improve near term modeling and planning of expected grades. As reported previously, an independent engineering firm is engaged in a resource modeling review of the entire Pan resource. We expect results of this study to be complete within a couple of weeks.
Since our initial gold pour, we have produced about 2,300 ounces of gold and continue to ramp up our production. Test results of material that has been loaded on the heap leach pad tend to reinforce our initial lab test work. However, the permeability of some of our initial cells have been lower than planned so we are continuing to evolve our pad blending practices to improve leach characteristics.
Bill Zisch stated, “We will report on our resource modeling to address some of the uncertainty associated with our grade variances when that exercise is complete. As we progress through a typical start-up of operations, we will continue to improve efficiencies and maximize value of the Pan Mine.”