News today. Corporate updateI strongly believe this issue will be settled soon. Hang on for the share price increase to follow once they have put in place another party.
Denver, Colorado (FSCwire) - Midway Gold Corp. (TSX and NYSE-MKT: MDW) (the “Company” or “Midway”) provides a corporate update today with regard to its current capital structure and existing debt obligations.
- As a result of the expiration of its waiver with the Senior Debt, the Company may now be in technical default of its loan agreements. The Company is in active discussions with its senior lender to obtain conditional waivers.
- The Company is reviewing alternative financing proposals to replace the Senior Debt that may provide the Company with necessary time and capital to advance its business although there can be no assurance that replacement debt will be on terms acceptable to the Company.
- The Board of Directors of the Company has formed a Special Committee (the "Committee") to explore and evaluate strategic alternatives to enhance shareholder value. The Committee was tasked with exploring, among other things, strategic partnerships, asset sale opportunities and debt refinancing opportunities. The Company has received a number of proposals from interested third parties and continues to work with its stakeholders and potential investors to bring a transaction to conclusion.
- RBC Capital Markets have been retained as the Company's financial advisor to assist with this process. It is the Company's current intention not to disclose developments with respect to the strategic review process until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate. The Company cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction.
- We remain committed to maximizing value for our stakeholders. A robust strategic process is ongoing and we have received good responses to date.
Midway Gold Corp.
Jaime Wells, 720-979-0900
Investor Relations