Midway Gold secures $55m to complete Nevada mine

Midway Gold Corp (TSE:MDW) consolidated an 18% advance for the week on Friday, after securing $55 million in project financing with Commonwealth Bank of Australia to complete development of Pan Gold Project, Nevada.

In afternoon dealings the Denver-based developer exchanged hands for $1.02, down a penny on the day, but up 18.6% on the Toronto big board from last Friday's close.

The tightly held company – worth $137 million on the TSX – announced yesterday after the close of trading the loan facility for the 100%-owned Pan project is comprised of two tranches, a project finance facility of $45
million plus a cost overrun facility of $10 million.

The Pan project is a low cost, oxidized, Carlin-style gold deposit mineable by shallow open pit methods and treatable by heap leaching.

A feasibility study was completed in November 2011 which calls for output of 76,000 ounces of gold per year and 644,000 of the life of the mine. The project is fully permitted (December 2013) and

Construction of the $161 million mine is 20% completed and initial gold pour is expected in the final quarter of this year.

Midway's other properties include the Spring Valley, Tonopah, Gold Rock, Thunder Mountain, and Pinyon projects located in Nevada and the Golden Eagle project located in Washington.