Midas Gold Reports That Vista Gold has Agreed to Reduce Its Shareholdings to 12.4%
February 06 2014 - 7:47AM
Marketwired
Midas Gold Reports That Vista Gold has Agreed to Reduce Its
Shareholdings to 12.4%
Vista enters into a Lock-up Agreement for its remaining Midas
Gold Shares
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 6, 2014) - Midas
Gold Corp. (TSX:MAX)(OTCQX:MDRPF) reports that it has been notified
by Vista Gold Corp. ("Vista") that Vista has entered into an
agreement to sell 16.0 million shares of Midas Gold Corp. ("Midas
Gold") held by Vista and/or its subsidiaries to certain
arm's-length parties at a fixed price of C$0.80 per share. Once
completed, this transaction will reduce Vista's shareholdings in
Midas Gold from 31,802,615 shares (representing 24.94% of Midas
Gold's currently issued shares) to 15,802,615 shares (representing
12.39% of Midas Gold's issued shares). Midas Gold understands that
the entire 16.0 million shares have subsequently been placed. As a
condition of the sale of 16.0 million shares, Vista Gold has agreed
not to sell any of its remaining shares in Midas Gold for a period
of 12 months from the closing of the share sale transaction.
"We are pleased to see 16 million shares previously owned by
Vista Gold placed more broadly," said Stephen Quin, President &
CEO of Midas Gold. "The share sale by Vista Gold, combined with a
12-month lock-up of their remaining shares, provides improved
certainty in respect of this significant block of shares."
As Vista is a greater than 20% shareholder of Midas Gold,
closing of the transaction is subject to an advance notice
requirement and, as a result, closing is expected to occur on or
about February 14, 2014. While the advance notice period extends
the closing, the terms of sale for the shares have been
predetermined with the purchasers of the shares. Midas Gold
currently has 127,534,136 shares issued and outstanding; the
completion of this transaction will not affect the number of shares
issued and outstanding.
About Midas Gold and the Golden Meadows Project
Midas Gold Corp., through its wholly owned subsidiaries Midas
Gold, Inc. and Idaho Gold Resources, LLC, is focused on the
exploration and, if warranted, development of gold-antimony-silver
deposits in the StibniteâYellow Pine district of central Idaho that
are encompassed by its Golden Meadows Project.
Forward-Looking Statements
Statements contained in this news release that are not
historical facts are "forward-looking information" or
"forward-looking statements" (collectively, "Forward-Looking
Information") within the meaning of applicable Canadian securities
legislation and the United States Private Securities Litigation
Reform Act of 1995. Forward Looking Information includes, but
is not limited to, disclosure regarding possible events, conditions
or financial performance that is based on assumptions about future
economic conditions and courses of action; In certain cases,
Forward-Looking Information can be identified by the use of words
and phrases such as "anticipates", "expects", "understanding", "has
agreed to" or variations of such words and phrases or statements
that certain actions, events or results "would", "occur" or "be
achieved". Although Midas Gold has attempted to identify important
factors that could affect Midas Gold and may cause actual actions,
events or results to differ materially from those described in
Forward-Looking Information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. In making the forward-looking statements in this news
release, Midas has applied several material assumptions, including
the assumptions that (1) the conditions precedent to completion of
the transaction will be fulfilled and the sale of Midas Gold shares
by Vista will be completed by the anticipated closing date of
February 14, 2014; and (2) if required, the receipt by Vista of all
necessary approvals and consents in respect of the transaction in a
timely manner. There can be no assurance that Forward-Looking
Information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
Forward-Looking Information. Except as required by law, Midas Gold
does not assume any obligation to release publicly any revisions to
Forward-Looking Information contained in this news release to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
Midas Gold Corp.Liz CaridiManager, Investor
Relations778.724.4704info@midasgoldcorp.comMidas Gold
Corp.Facebook: www.facebook.com/midasgoldidahoTwitter:
@MidasIdahowww.midasgoldcorp.com