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Midas jumps on Barrick’s strategic backing

VANCOUVER (miningweekly.com) – The TSX-listed equity of Midas Gold jumped nearly 19% following an announcement by Barrick Gold that it will increase its position in the company to 19.9%.

Barrick sees the investment as a strategic move to gain access to the Stibnite gold project, in Idaho, which Barrick president Kelvin Dushnisky said offers a “compelling investment proposition”, with low geopolitical risk, potential for production of more than 300,000 oz of gold a year at competitive operating costs, and with added exploration upside.

The companies have signed a subscription agreement for Barrick to acquire 46.55-million Midas common shares in a nonbrokered private placement at a price of C$1.06 a share, for gross proceeds of $38.06-million.

So long as Barrick maintains a minimum of 10% ownership in Midas, Barrick will have a right to appoint one director to an expanded board from seven to eight and it will be appointing an independent director to fill that position.

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