Midas Gold secures $35m financing from Paulson
Midas Gold (TSX: MAX) has completed its previously announced offering of senior unsecured convertible notes issued by a wholly-owned subsidiary of the company, raising total gross proceeds of C$47.6 million (about $35m).
The notes are convertible into common shares of the company at C$0.4655 per share. All of the notes were purchased by New York-based investment management firm Paulson & Co., which holds an approximate 3.56% ownership in Midas Gold’s share capital and 44.43% on a partially diluted basis.
With the financing secured, Midas Gold plans to use the proceeds to advance its flagship Stibnite gold project in Valley County, Idaho. Work would include permitting and feasibility studies.
The project contains one of the largest gold reserves in the nation, capable of producing 337,000 ounces of gold per year.