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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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MARKET SUMMARY

INDICES

Name Last Change
DOW 24100.50 2.06%
S&P 500 2599.95 1.95%
NASDAQ 6910.67 2.31%
TSX 14595.07 1.06%
TSX-V 555.38 0.00%

Resource Commodities

Name Last Change
Gold 1238.38 0.29%
Silver 14.57 1.17%
Copper 2.76 0.000
Platinum 787.00 0.000
Oil 51.20 2.70%
Natural Gas 3.83 7.76%
Uranium 28.53 0.35%
Zinc 1.22 0.00%

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