Following up from a $15 million financing with Franco Nevada in May, Midas Gold announced Tuesday that Teck Resources will be financing the junior with a Can$9.8 million non-brokered placement.
Before Tuesday's transaction, Teck held no shares of Midas. It now owns 9.9% of the company.
Midas says the proceeds will be used for evaluating its Golden Meadows project, a gold-antimony-silver property in Idaho, US. Funds will also be used for general working capital purposes.
In a news release, Midas Gold's CEO, Stephen Quin, laid out his plans for Golden Meadows.
"This financing will allow us to make the necessary commitments to support the delivery of our key objectives of (1) updating the mineral resources estimates for the Golden Meadows Project to incorporate substantial amounts of new data collected in 2012-13, (2) complete a pre-feasibility study based on the updated mineral resource estimates and incorporate updated designs, concepts and engineering in the first half of 2014 and, if warranted, (3) subsequently prepare and submit a plan of operations to initiate the preparation of an environmental impact statement by the appropriate regulators."
Midas Gold is up 5% this week to 78 cents. Its 52-week range is 66 cents to $3.64.