Midway Gold Announces Terms Of US$15.04 Mln Unit Offering

6/26/2012 6:05 PM ET

Midway Gold Corp. (MDW: Quote,MDW.V: Quote) announced that it has entered into an underwriting agreement with a syndicate of underwriters co-led by RBC Capital Markets and Haywood Securities Inc. and including Stifel Nicolaus Canada Inc. or collectively, the "Underwriters", whereby the Underwriters have agreed to purchase 11.75 million units at a price of US$1.28 per Unit for gross proceeds of US$15.04 million.

Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of the Company for a period of 18 months following the closing of the Offering at a price of US$1.85.

The company said it can accelerate the expiry of the Warrants to a date 30 days after giving notice to the holders thereof in the event the Company's common shares trade at a closing price on the NYSE MKT of greater than US$2.10 for a period of 20 consecutive trading days following the Closing.

The company said it has granted the Underwriters an over-allotment option to purchase additional Units and/or additional Warrants on the same terms as the Offering, in an amount equal to up to 15% of the number of Units sold pursuant to the Offering, exercisable at any time up to 30 days from and including the Closing. If the Over-Allotment Option is exercised in full, the total gross proceeds to Midway will be US$17.30 million.

Closing is expected to occur on or about July 6, 2012 and is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange and the NYSE MKT.

Midway said it intends to use the net proceeds of the Offering to advance its projects and for general corporate purposes, including property maintenance fees.

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by RTT Staff Writer

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