VANCOUVER ( – 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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Name Last Change
DOW 27094.80 0.19%
S&P 500 3006.79 0.00%
NASDAQ 8182.88 0.07%
TSX 16858.35 0.34%
TSX-V 584.22 0.00%

Resource Commodities

Name Last Change
Gold 1505.95 0.43%
Silver 17.93 0.73%
Copper 2.61 2.609
Platinum 901.00 0.67%
Oil 58.13 0.03%
Natural Gas 2.54 3.90%
Uranium 25.53 0.59%