VANCOUVER (CP) -- Barrick, which has invested $12.3 million in Midway and is its largest shareholder with a 10.5% interest, has an exclusive right to earn the 60% interest in the property by spending $30 million over five years, Midway said Monday.
Barrick can raise this stake to 70 per cent by spending an additional US$8 million in the sixth year, and to 75% by proceeding to a production decision and arranging financing for Midway's share of mine construction costs.
"We believe that Barrick has the capability to develop Spring Valley into a producing mine," stated Midway CEO Alan Branham.
"As evidenced by our recent results from 2008 drilling, the deposit continues to expand," Branham added.
"This partnership leverages our $24-million investment in the project and will benefit our shareholders through Barrick's extensive Nevada operation expertise in one of the large new Nevada discoveries of recent years."
The inferred resource estimate released in March was 50.6 million tons of ore at 0.0196 ounce of gold per ton for a total of 992,152 ounces, and drilling has continued.
(c) The Canadian Press