NEW YORK, Nov. 20, 2020 (GLOBE NEWSWIRE) -- Paulson & Co. Inc. ("Paulson"), as manager of funds holding 209.4 million, or 44.1%, of the outstanding common shares of Midas Gold Corp. (TSX: MAX) (“Midas Gold” or the “Company”) today issued the Company’s employees a letter in connection with requisitioning a Special Meeting of Shareholders to refresh the Company’s Board of Directors (the “Board”).
The text of the letter reads:
Dear Team Midas,
We hope this note finds you well, and that you and your families are healthy and safe.
We write to you in our capacity as the largest shareholder of Midas Gold Corp. Given the many milestones we have hit this year, all due to the extraordinary effort you have put in on the ground in Idaho, we believe now is the appropriate time to start planning the next phase of the Company as it evolves from seeking permits to eventually taking the Stibnite Gold Project into production.
To do so, first and foremost, we believe that Midas Gold should be a U.S. company based in Idaho. We believe that it is time for Midas to redomicile from Canada to the United States. By doing so, we show our commitment to our many stakeholders, including our local communities, government partners and most importantly, you in Idaho. By redomiciling, we would streamline our corporate structure and elevate and empower the Idaho-based team as the Company moves into its next phase.
Second, we believe we must continue to position ourselves as a critical minerals company and not just as a gold producer. Given antimony’s growing significance as a critical mineral of strategic value to the United States, it is imperative that we highlight that value domestically to continue garnering stakeholder support for development of the project.
For us to credibly achieve these goals, we think it is imperative that the Board show leadership at the top by refreshing itself with more U.S., and specifically Idaho-based, directors, and by adding people with skills that better align with the future direction of the company. Unfortunately, it appears that the current board is unwilling to proactively refresh itself to align with these objectives.
Accordingly, this morning we issued a news release calling for changes to Midas Gold Corp’s board. This will have no effect on the Idaho team, as it is strictly a board matter that will ultimately be resolved by shareholders over the next several months. In the meantime, please stay focused on what you do best: working hard and smart day-in and day-out to move the project forward. Please know that you have our total support. You are the backbone of this company both today and into the future. The board changes we seek are a demonstration of our commitment to you. Assuming these board changes are implemented, we believe that Midas will emerge stronger and better positioned to make the Stibnite Gold Project a reality.
If you have questions or comments, please reach out to us via email or phone. Being transparent with and available to you is important to us. As you may know, Paulson recently transitioned from an investment manager to a family office and also converted our investment in Midas from debt into common equity. These developments make us an even better long-term partner and investor for Midas than before, since we have the patient, long-term capital and resources to help take this project across the finish line and into production in the coming years.
Thank you for your commitment to Midas.
|Marcelo Kim||Chris Papagianis|
|Partner, Paulson & Co. Inc.||Partner, Paulson & Co. Inc.|
A copy of this news release may be obtained on Midas Gold's SEDAR profile at www.sedar.com. The head office of Midas is Suite 890, 999 West Hastings Street, Vancouver, BC V6C 2W2. The address of Paulson is 1133 Avenue of the Americas, New York, NY 10036.
About Paulson & Co. Inc.
Paulson, founded in 1994, is a private investment management firm headquartered in New York. Paulson first invested in Midas Gold in 2016 and has continued to provide the Company with $66 million of capital to support the development Stibnite Gold Project and its plans to redevelop and restore a brownfields site, as well as provide America with its only source of domestically mined antimony, a critical mineral.
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