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Barrick grabs stake in Midas Gold, accesses promising Idaho project

Barrick Gold (NYSE, TSX:ABX), the world's top miner of the precious metal, said Tuesday is buying about $38 million in Midas Gold’s (TSX-V:MAX) shares, in a deal that gives the Canadian giant an almost 20%-stake in the junior as well as access to the promising Stibnite Gold project, in Idaho, US.

“Midas Gold’s Stibnite Gold project in Idaho offers a compelling investment proposition, with low geopolitical risk,” Barrick President, Kelvin Dushnisky, said in the statement.

Vancouver-based Midas is in the midst of renovating an old mining site in Idaho into a modern open pit mine, which is projected to create over $1 billion of economic value for the state and nearly 1,000 jobs.

Stibnite, which has the potential to produce over 300,000 ounces of gold per year, also contains antimony, used as a fire retardant and metal strengthener. That mineral, experts believe, may become a strategic asset for the US in its impending trade war with China.

Midas filed a plan for restoration and development of the site with authorities in 2016 and is currently completing a feasibility study for the project. It said it would use the proceeds from Barrick to complete the study and secure remaining permits for Stibnite.

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