Midas Gold Enters Into US$15 M Transaction With Franco-Nevada

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Midas Gold Corp. (MAX.TO) which is up 4 cents to 83 cents in early trade, yesterday announced that it and its subsidiaries have entered into a US$15.0 million transaction with Franco-Nevada Corporation (FNV.TO) and one of its subsidiaries. The Midas Group has agreed to sell certain rights to a royalty on future gold production from the Golden Meadows Project in Valley County, Idaho as well as a subscription agreement for two million warrants exercisable for shares of Midas Gold.

Midas Gold intends to use the proceeds of the transactions to fund on-going mineral resource evaluation, metallurgical, engineering design, and environmental baseline data collection and evaluation at the Golden Meadows Project with a view to completing a prefeasibility study on the Golden Meadows Project and, if warranted, filing an application for the development of a mining operation, as well as for general working capital.

Transaction Summary

The subsidiaries of Midas Gold that hold the mineral title to the Golden Meadows Project have entered into the Agreement with a subsidiary of Franco-Nevada whereby the Vendor Group has granted the Payee a perpetual 1.7% net smelter returns ( NSR ) royalty on any future gold production from the Golden Meadows Property, subject to the normal terms and conditions for such a royalty, in exchange for the sum of US$14.65 million. The royalty excludes antimony, silver and other valuable by-products that may be produced from the Golden Meadows Property, if and when development proceeds.



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