Midas Gold Receives Additional C$5.2 Million Pursuant to Exercise of Over-Allotment Option
VANCOUVER, Aug. 15, 2011 /CNW/ --
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES AND NOT A SOLICITATION OR A
PROSPECTUS FOR STOCK/
VANCOUVER, Aug. 15, 2011 /CNW/ - Midas Gold Corp. ('Midas Gold' or the
'Corporation') (TSX:MAX) today announced that, further to its news release dated July 14, 2011,
the syndicate of agents led by Haywood Securities Inc. and BMO Capital
Markets, and including Canaccord Genuity Corp. and Macquarie Capital
Markets Canada Ltd. (the 'Agents') has exercised its over-allotment
option to purchase an additional 1,623,155 common shares of the
Corporation (being that number of shares as is equal to approximately
13% of the number of common shares sold under the Corporation's initial
public offering) at a price of C$3.25 per share for gross proceeds of
C$5,275,253.75. The over-allotment option was granted to the Agents in
connection with Midas Gold's initial public offering of 12,307,700
common shares completed on July 14, 2011 in order to cover
over-allotments and for market stabilization purposes.
No US Registration or Offering
Midas Gold's common shares have not been, and will not be, registered
under the United States Securities Act of 1933, as amended (the 'U.S.
Securities Act'), or any U.S. state securities laws and may not be
offered or sold in the United States or to U.S. Persons absent
registration or an available exemption from the registration
requirements of the U.S. Securities Act and applicable U.S. state
securities laws. This press release does not constitute an offer to
sell or the solicitation of an offer to buy, nor will there be any sale
of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to qualification under the
securities laws of any such jurisdiction. Any public offering of
securities in the United States must be made by means of a U.S.
prospectus containing detailed information about the company and
management, as well as financial statements.
About Midas Gold and the Golden Meadows Project
Midas Gold is focused on the exploration and, if warranted, development
of the Golden Meadows Project in the Stibnite‐Yellow Pine district of
central Idaho. Gold mineralization within the Golden Meadows Project
appears to be associated with an intrusion related, gold‐rich system
overprinted by a younger, epithermal gold system with increased silver,
tungsten and antimony. Historic production from the district is
estimated at approximately one million ounces of gold, along with
significant by‐products of silver, antimony and tungsten, primarily
from underground higher‐grade gold-antimony production at Hangar Flats
from 1925‐38, open pit mining at Yellow Pine from 1938‐52, and from
heap leaching of oxide gold occurrences, including West End, Garnet
Creek and Homestake, from 1974 to 1997. The deeper sulphide gold
potential has seen little modern exploration. The principal gold
deposits identified to date within the Golden Meadows Project are the
Hangar Flats, West End and Yellow Pine deposits, all of which are
associated with important structural corridors. Independent mineral
resource estimates were reported for all three deposits in a news
release dated April 20, 2011 and are detailed in a consolidated
technical report entitled 'NI 43-101 Technical Report on Mineral Resources, Golden Meadows Project,
Valley County, Idaho' dated June 6, 2011 (the 'Technical Report') and filed under Midas Gold's profile at www.sedar.com. The Hangar Flats, West End and Yellow Pine deposits remain open along
strike and to depth and other mineralized areas within the Golden
Meadows Project remain to be evaluated.
MIDAS GOLD CORP.
Stephen Quin
President & CEO
Compliance with National Instrument 43‐101
The technical information in this news release has been prepared in
accordance with Canadian regulatory requirements set out in National
Instrument 43‐101 and reviewed and approved by Stephen P. Quin, P.
Geo., President and CEO of Midas Gold Corp. and a Qualified Person. The
exploration activities at the Hangar Flats and West End deposits were
carried out under the supervision of Christopher Dail, C.P.G.,
Qualified Person and Project Manager for the Golden Meadows Project.
For readers to fully understand the information in this news release,
they should read the Technical Report in its entirety, including all
qualifications, assumptions and exclusions that relate to the
information set out in this news release which qualifies the technical
information. The Technical Report is intended to be read as a whole,
and sections should not be read or relied upon out of context. The
technical information in the Technical Report is subject to the
assumptions and qualifications contained therein.
Readers are advised that mineral resources that are not mineral reserves
do not have demonstrated economic viability. Mineral resource estimates
do not account for mineability, selectivity, mining loss and dilution.
These mineral resource estimates include inferred mineral resources
that are considered too speculative geologically to have economic
considerations applied to them that would enable them to be categorized
as mineral reserves. There is also no certainty that these inferred
mineral resources will be converted to the measured and indicated
categories through further drilling, or into mineral reserves, once
economic considerations are applied.
The mineral resources at Golden Meadows are contained within areas that
have seen historic disturbance resulting from prior mining activities.
In order for Midas to advance its interests at Golden Meadows, the
project will be subject to a number of Federal, State and local laws
and regulations and will require permits to conduct its activities.
Cautionary Note - The mineral resource estimates referenced in this
press release use the terms 'Indicated Mineral Resources' and 'Inferred
Mineral Resources.' We advise you that while these terms are defined
in and required by Canadian regulations, these terms are not defined
terms under the U.S. Securities and Exchange Commission ('SEC')
Industry Guide 7 and are normally not permitted to be used in reports
and registration statements filed with the SEC. 'Inferred Mineral
Resources' have a great amount of uncertainty as to their existence,
and great uncertainty as to their economic and legal feasibility. The
SEC normally only permits issuers to report mineralization that does
not constitute SEC Industry Guide 7 compliant 'reserves' as in-place
tonnage and grade without reference to unit measures. U.S. investors
are cautioned not to assume that any part or all of mineral deposits in
these categories will ever be converted into reserves. Midas Gold is
not an SEC registered company.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/15/c3828.html
about Midas Gold Corp., please contact:
Liz Caridi - Manager, Investor Relations
Tel: 604.568.4580
E-mail: info@midasgoldinc.com