Paulson's note conversion gives him 44% of Midas Gold
(Kitco News) - Paulson & Co. said Wednesday it will exercise the conversion note on its Midas Gold (TSE:MAX) convertible notes giving Paulson 44% of Midas.
Midas Gold is developing the brownfield site, the Stibnite Gold Project, in Idaho. Midas Gold said the project is a multi-million-ounce high-grade open-pit gold reserve.
Based on a 2014 preliminary feasibility study, the project would need about $1 billion to become a mine.
Earlier this month, the U.S. Forest Service released the draft environmental impact statement for the project.
“Given the release of the DEIS and the commencement of the public comment period, we believe that it is an appropriate time for the conversion of the Notes, and Paulson intends to remain a long-term shareholder of the Company,” said Marcelo Kim, Partner of Paulson and the Chairman of the Board of Midas Gold. “We believe this is in the best interests of the company and its many stakeholders. This action will better position the company to achieve its long-term objective of developing the Stibnite gold project.”