Midas Gold adds first quarter contribution to Stibnite Foundation
At the end of April, Midas Gold made good on its commitment to add another $100,000 to the Stibnite Foundation for the first quarter of 2019, a spokesperson told the Free Press on the company’s behalf Wednesday, May 15.
That’s a month later than Stibnite Advisory Council records stated that contribution was due.
Under its agreement with eight local governments for the company to contribute more money to the foundation with each step toward restarting the old Stibnite Mine near Yellow Pine, Midas Gold gave $100,000 plus stock earlier in April, to launch the foundation.
The company had noted the initial payout in a press release and described it in the first quarter financial information Midas published on its website. The company hadn’t detailed the second $100,000 in its first quarter report, because that payment was made after the first quarter, according to spokeswoman Natalie Podgorski of Foresight Public Affairs.
The agreement describes three milestones to come before Midas restarts production at the old Stibnite site, each of which is coupled to a cash payout to the foundation. Those steps – the decision by the Payette National Forest, the company’s receipt of all the needed permits, and the start of construction – would see additions of $100,000, another $100,000 plus 1.5 million shares of stock, and $250,000 each year until the start of production
The agreement calls for Midas to continue to add to the foundation each year during production, and to grant $1 million to the foundation when the work shifts to reclamation.
“Midas Gold is distributing funds to the foundation throughout the life of our project to ensure the foundation can continue long after the project is complete,” Podgorski said. “The foundation board will outline spending in such a manner to have an annual granting process for community programs and develop an endowment for the future. … The foundation will be gifted shares in the company but the annual payments are in addition to the shares.”
The foundation has so far received $200,000 in cash and 1.5 million shares of stock, according to the company; public trading of Midas stock closed May 16 at 50 cents per share.