Midway Gold And Barrick Sign Joint Venture Deal For Spring Valley Gold Project

Midway Gold Corp. has finalized a joint venture exploration agreement with Barrick Exploration (a wholly-owned subsidiary of Barrick Gold) for its Spring Valley project in Nevada. Barrick will have the right to earn 60% ownership of Spring Valley by spending US$30 million on the property within five years, and $4 million within a year. If Barrick spends $8 million more after it earns the 60%, then it will earn an additional 10%. An additional 5% comes with bringing the project to a "production decision" at Midway's election. The news release mentions that there's already an NI 43-101 compliant resource estimate for the project, with only inferred resources of 87.75 million tons grading 0.65 g/t per ton gold using a cut-off grade of 0.187 g/t.

Midway's stock closed at 64 cents yesterday. As of the time of this posting, the bid-ask is 52-65 cents.

Midway's Google Finance web page is here. Barrick's is here.

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