Barrick grabs stake in Midas Gold, gets access to promising Idaho project

Barrick Gold (NYSE, TSX:ABX), the world's top miner of the precious metal, said Tuesday is buying about $38 million in Midas Gold’s (TSX-V:MAX) shares, in a deal that gives the Canadian giant an almost 20%-stake in the junior as well as access to the promising Stibnite Gold project, in Idaho, US.

“Midas Gold’s Stibnite Gold project in Idaho offers a compelling investment proposition, with low geopolitical risk,” Barrick President, Kelvin Dushnisky, said in the statement.

Midas Gold is in the midst of advancing the Stibnite Gold project through completion of a feasibility study and permitting for site restoration and redevelopment. The assets, which has the potential to produce over 300,000 ounces of gold per year, also contains antimony, used as a fire retardant and metal strengthener. That mineral, expert believe, may become a strategic asset for the US in its impending trade war with China.

“With our detailed plan for site restoration and protection of the environment, a large, long-life and low-cost operation, and a comprehensive proposal for the closure and reclamation of the site, Midas Gold is positioned to complete the critical milestones of feasibility study and permitting,” Midas President and chief executive, Stephen Quin, said in a separate statement.

The non-brokered private placement values Midas’ stock at Cdn$1.06 and it’s expected to lose on or about May 15, 2018.

More to come…

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