Klondex Mines Ltd. (TSX:KDX) has closed the previously announced acquisition of the Midas mine and ore milling facility in Nevada from a Newmont Mining Corporation subsidiary.
As quoted in the press release:
The aggregate purchase price totaled approximately US$83 million, including a US$55 million payment to Newmont and US$28 million to replace the reclamation bond. Klondex has also issued 5 million common share purchase warrants to Newmont with a 15-year term, subject to acceleration in certain circumstances, and an exercise price of C$2.15.
Klondex President and CEO, Paul Huet, said:
Completing this transformational and highly synergistic acquisition is very exciting for us. The addition of the operating Midas mine and mill complex to our portfolio creates an enhanced platform for future growth in one of the world’s most prolific and mining-friendly jurisdictions. We believe that Fire Creek is a tremendous high-grade gold asset with substantial upside potential on its own and, through this acquisition, we have cemented a long-term milling solution, minimizing the risks associated with toll milling, and ultimately enhancing the potential for increased cash flows from our operations. We are extremely pleased to have worked with Newmont to complete the acquisition of Midas, a mine that I, along with several others on the Klondex leadership team operated, and look forward to a continued relationship.