Midway Updates Pan Development and Outlines Key 2013 Milestones
Midway Gold Corp. ('Midway? or the 'Company?) would like to provide a
2012 year-end review of the Pan Gold Mine Project ('Pan?) and a road map
for the year ahead. The Pan Project is an open pit mining, development
stage project in eastern Nevada with an expected 2014 production date.
A Letter from Ken Brunk ? Chairman, President and CEO of Midway
2013 will be a transformational year for Midway. The beginning of a new
year provides an opportunity to share with our shareholders the
successes of a year past and the Company′s plans for the next. This
letter highlights 2012 accomplishments and outlines our priorities for
the coming year. Throughout this year we plan to share updates on our
projects and provide greater detail on the 'when? the 'why? and the
'how,? which combined are the true backbone for continued success. Key
2012 accomplishments for the Pan project:
Permitting is on schedule and well positioned for construction in 2013
and production in 2014
Continued engineering and testing activities to better understand
project economics
Successful capital raise of $70 million at a significant premium to
market
Pan Permitting
Pan, our flagship project, is an oxidized, Carlin-type gold deposit that
will be an open pit, heap leach mine. During 2012 Midway worked
diligently to advance Pan to be ready for 2013 construction and for
production in mid-2014.
We have advanced well into the NEPA permitting process. Progress in 2012
includes:
Selection of our 3rd Party contractor who specializes in
mining activity in Nevada to draft the Environmental Impact Statement
Publication in the Federal Register pursuant to the EIS notice
requirements
Holding multiple public scoping and informational meetings
During the next three quarters, Midway plans to:
Notify the public when the Draft EIS for Pan has been published in the
Federal Register
Address additional comments as needed for the Final EIS & the Final
Positive Record of Decision
Midway is committed to the more detailed EIS process rather than the
simpler EA process because it is one example of our commitment to build
a responsible, forward thinking, long-term business. Not only does this
mean meeting and exceeding regulatory requirements, but also not taking
any short cuts in our processes. We will provide updates on this process
as we complete the remaining milestones to our Record of Decision.
Engineering, Operations and Equipment
Our engineering and operational team are preparing for the next phase of
our growth. The team′s 2012 focus included:
Optimizing pit plans and mining equipment needs
Continuing gold recovery tests on bulk samples from the mining area
Working with Jacobs Engineering Group Inc. (NYSE:JEC), a world-class
construction and engineering company to detail and refine the design
of the project
Midway′s goal has been to develop streamlined construction schedules
that enhance cost effectiveness. We believe you will all see the
positive benefits of these efforts as 2013 unfolds.
Between now and the Fall of 2013, Midway will be placing the orders for
our long lead time equipment for Pan, such as the main electrical
sub-station, front-end loaders for mining and heap leach operational
equipment. We will negotiate supply contracts for the diesel fuel,
reagents and other consumables needed for Pan′s operation in 2014. Our
goal is to ensure that we have the materials at cost effective prices to
meet our business plan in a timely manner.
Financing
Midway′s financial team successfully raised $85 million in 2012
demonstrating the strength of our business in very difficult markets.
This capital will be used to build the Pan project and to provide
working capital to continue our overall operations. $70 million of
capital was raised as a preferred stock transaction with our strong
financial partner, Hale Capital. The team′s goal was to limit common
shareholder dilution and to avoid hedging.
Since that financing, we have been working with several banks and with
Caterpillar Equipment to secure the balance of the financing needed to
fund Pan′s production and operations until Pan is cash flow positive.
This effort is advancing at a steady pace and we fully anticipate having
agreements in place this summer with the funds being drawn after receipt
of permits this fall.
The Team and the Community
We have great properties, but one of our most important resources is our
people. We will be operating our own mines and not contracting out our
labor, allowing us to better manage and control our operations. Mines
are built by people and the Midway team that continues to grow is
experienced, driven and truly a joy to work with. It is a pleasure to
acknowledge their hard work, dedication, and commitment to the Company.
This recognition is important at both the operations and the community
level. Our team in Ely, Nevada has gone above and beyond to take part in
local activities and events. Their participation continues to strengthen
our relationship with the local community and we would like to recognize
their efforts. To name a few:
Safe and Sober Grad Night volunteers
Sponsorship of a half court shot event with the White Pine County High
Basketball program
Donation of football and basketball uniforms
Sponsorship of the White Pine Gymkhana 4-H Horsemanship
Provided 5 scholarships to students ? 2 athletic and 3 academic
Participated in the White Pine County fair including sponsorship of
the WPC horse races
Purchased a beef, lamb and pig at the WPC 4-H Livestock Show and
donated a beef to the local Senior Center
For this kind of enthusiasm and dedication we are very thankful.
The Road Forward
2013 will be an exciting year for our shareholders, as we focus on
completing the permitting process that will allow the commencement of
construction in 2013 and of mining operations in 2014. Our current cash
and facilities we are putting in place will finance these activities.
The Midway story is a strong one that is gaining momentum with each new
milestone. 2012 was indeed an important year in advancing our projects
and we look forward to updating you on the progress in the coming weeks
and months ahead.
And to you, our shareholders, thank you for your continued support this
past year. On behalf of the team at Midway, we look forward to a
successful, transformational and rewarding 2013.
ON BEHALF OF THE BOARD
'Kenneth A. Brunk'
Kenneth A. Brunk, Chairman, President and CEO
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. For more
information about Midway, please visit our website at www.midwaygold.com
or contact Jaime Wells, Investor Relations Analyst, at (877) 475-3642
(toll-free).
Neither the TSX Venture Exchange, its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture 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 and resource estimates and
potential offering of common shares of the Company from time to time.
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. These risks,
uncertainties and other factors include, without limitation, risks
related to the timing and completion of the Company's intended work
plans, risks related to fluctuations in gold prices; uncertainties
related to raising sufficient financing to fund the planned work 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; 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; 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.
Cautionary note to U.S. investors concerning estimates of reserves
and resources: This press release and the documents referenced in this
press release use the terms 'reserve' and'mineral
resource', which are terms defined under Canadian National Instrument
43-101 and the Canadian Institute of Mining and Metallurgy
Classification system.Such definitions differ from the
definitions in U.S. Securities and Exchange Commission ('SEC') Industry
Guide 7.Under SEC Industry Guide 7 ?standards, a 'final' or
'bankable' feasibility study is required to report reserves, the
three-year historical average price is used in any reserve or cash flow
analysis to designate reserves and the primary environmental analysis or
report must be filed with the appropriate governmental authority.Mineral
resources are not mineral reserves and do not have demonstrated economic
viability. 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.The references to a 'resource? in this press release
and the documents referenced in this press release are not normally
permitted under the rules of the SEC.It cannot be assumed that
all or any part of mineral deposits in any of the above categories will
ever be upgraded to Guide 7 compliant reserves. Accordingly, disclosure
in this press release and in the technical reports referenced in this
press release may not be comparable to information from U.S. companies
subject to the reporting and disclosure requirements of the SEC.
Midway Gold Corp.
Jaime Wells, Investor Relations Analyst, (877)
475-3642 (toll-free)
