Midway Receives First Bank Funds for Pan Gold Project
December 01 2014 - 8:00AM
Business Wire
MINING OPERATIONS CONTINUE TO RAMP
UP
Midway Gold Corp. (TSX and NYSE-MKT:MDW) (the “Company” or
“Midway”) today announces that it has made an initial draw of $18
million on the project finance facility that was closed July 21,
2014 with Commonwealth Bank of Australia (“CBA”). The receipts will
be used to fund construction obligations and mining operations at
the Pan Gold Mine in eastern Nevada. Pan is in the late stages of
construction with the first gold pour currently scheduled for late
January 2015.
Midway’s President and CEO, Ken Brunk, stated, “I would like to
express our thanks to CBA and our shareholders for placing their
faith in the team here at Midway. That faith, expressed through the
placement of debt and equity for the timely completion of Pan will
enable Midway Gold to enter the realm of gold producers in Nevada
at a time when the ability to raise either debt or equity for
mining projects is a serious industry challenge.
The total capital expenditure for Pan construction is estimated
at $76 million. We have spent approximately $55 million to date on
construction as of November 30. We anticipate spending an
additional $21 million for completion of construction and an
additional $8 million for mining operations and other working
capital items, net of revenue credits, until the project is
expected to generate cash flow in March 2015. We have experienced
significant reductions in initial capital requirements by
eliminating a Midway-owned mining fleet, employing run of mine
leaching at South Pan and by diligent cost reduction efforts at the
project level as well as at the corporate level. We have
accomplished these items while still progressing Pan to production
and advancing our second project, Gold Rock, through the permitting
process.
Recent updates to our leach pad-stacking plan have resulted in a
slightly lower working capital requirement for the project in 2015.
The project finance facility has therefore been reduced from $45
million to $43 million while the $10 million cost overrun facility
will remain in place to fund any cost overruns during construction
and start-up of operations.
Our mining contractor at Pan began mining activities in
September and is currently building up to a target mining rate of
60,000 tons per day (ore and waste). We expect to begin irrigation
of the leach pad in mid-December to achieve our target for a late
January gold pour. We believe we are positioned for an exciting
2015 as Midway becomes Nevada’s next gold producer.”
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a vision to
explore, design, build and operate gold mines in a manner
accountable to all stakeholders while assuring return on
shareholder investments.
Midway Gold Corp.Jaime Wells, 720-979-0900Investor
Relationsjwells@midwaygold.comwww.midwaygold.com
Neither the TSX Exchange, its Regulation Services Provider (as
that term is defined in the policies of the TSX Exchange) nor the
NYSE MKT accepts responsibility for the adequacy or accuracy of
this release.
This press release contains forward-looking statements about the
Company and its business. Forward looking statements are statements
that are not historical facts and include, but are not limited to,
statements about the Company's intended work plans, timing of gold
pour, anticipated gold production, anticipated reductions in future
costs and capital needs, cost to complete construction of the Pan
Mine, targeted mining rates, schedule for beginning leach-pad
irrigation, milestones, construction schedule, operational and
other statements, estimates or expectations. Forward-looking
statements are typically identified by words such as: “may”,
“should”, “plan”, “believe”, “predict”, “expect”, “anticipate”,
“intend”, “estimate”, postulate”, “target” and similar expressions
or the negative of such expressions or which by their nature refer
to future events. The forward-looking statements in this press
release are subject to various risks, uncertainties and other
factors that could cause the Company's actual results or
achievements to differ materially from those expressed in or
implied by forward looking statements. There can be no assurances
that the conditions precedent to make additional draws on the
project debt package will be met or we will make additional draws
on the project debt package even if we complete the conditions
precedent. Other risks, uncertainties and factors include, without
limitation, risks related to the timing and completion of the
Company's intended work plans, potential delay of material
deliveries, ability to meet debt covenants and obligations, risks
related to fluctuations in gold prices; uncertainties related to
raising financing in a timely manner and on acceptable terms;
changes in planned work resulting from weather, logistical,
technical or other factors; the possibility that results of work
will not fulfill expectations and realize the perceived potential
of the Company's properties; uncertainties involved in the
interpretation of drilling results and other tests and the
estimation of gold resources and reserves; ability to meet loan and
financing covenants in the future; the possibility that required
permits may not be obtained on a timely manner or at all; the
possibility that capital and operating costs may be higher than
currently estimated and may preclude commercial development or
render operations uneconomic; the possibility that the estimated
recovery rates may not be achieved; risk of accidents, equipment
breakdowns and labor disputes or other unanticipated difficulties
or interruptions; the possibility of cost overruns or unanticipated
expenses in the work program; changes in interest and currency
exchanges rates; local and community impacts and issues;
environmental costs and risks; and other factors identified in the
Company's SEC filings and its filings with Canadian securities
regulatory authorities. Forward-looking statements are based on the
beliefs, opinions and expectations of the Company's management at
the time they are made, and other than as required by applicable
securities laws, the Company does not assume any obligation to
update its forward-looking statements if those beliefs, opinions or
expectations, or other circumstances, should change. Although the
Company believes that such forward-looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. For the reasons set forth above, investors
should not attribute undue certainty to or place undue reliance on
forward-looking statements.
Midway Gold Corp.Jaime Wells, 720-979-0900Investor
Relationsjwells@midwaygold.comwww.midwaygold.com