Mr. Kenneth Brunk reports
MIDWAY UPDATES PAN DEVELOPMENT AND OUTLINES KEY 2013 MILESTONES
Midway Gold Corp. would like to provide a
2012 year-end review of the Pan gold mine project and a road map
for the year ahead. The Pan project is an open pit mining, development
stage project in eastern Nevada with an expected 2014 production date.
A letter from Ken Brunk -- chairman, president and chief executive officer of Midway
Two thousand thirteen will be a transformational year for Midway. The beginning of a new
year provides an opportunity to share with our shareholders the
successes of a year past and the company's plans for the next. This
letter highlights 2012 accomplishments and outlines our priorities for
the coming year. Throughout this year we plan to share updates on our
projects and provide greater detail on the "when" the "why" and the
"how," which combined are the true backbone for continued success. Key
2012 accomplishments for the Pan project:
Permitting is on schedule and well positioned for construction in 2013
and production in 2014;
Continued engineering and testing activities to better understand
Successful capital raise of $70-million at a significant premium to
Pan, our flagship project, is an oxidized, Carlin-type gold deposit that
will be an open pit, heap leach mine. During 2012 Midway worked
diligently to advance Pan to be ready for 2013 construction and for
production in mid-2014.
We have advanced well into the NEPA permitting process. Progress in 2012
Selection of our third party contractor which specializes in
mining activity in Nevada to draft the environmental impact statement;
Publication in the Federal Register pursuant to the EIS notice
Holding multiple public scoping and informational meetings;
During the next three quarters, Midway plans to:
Notify the public when the draft EIS for Pan has been published in the
Address additional comments as needed for the final EIS and the final
positive record of decision.
Midway is committed to the more detailed EIS process rather than the
simpler EA process because it is one example of our commitment to build
a responsible, forward-thinking, long-term business. Not only does this
mean meeting and exceeding regulatory requirements, but also not taking
any shortcuts in our processes. We will provide updates on this process
as we complete the remaining milestones to our record of decision.
Engineering, operations and equipment
Our engineering and operational team are preparing for the next phase of
our growth. The team's 2012 focus included:
Optimizing pit plans and mining equipment needs;
Continuing gold recovery tests on bulk samples from the mining area;
Working with Jacobs Engineering Group Inc., a world-class
construction and engineering company to detail and refine the design
of the project.
Midway's goal has been to develop streamlined construction schedules
that enhance cost-effectiveness. We believe you will all see the
positive benefits of these efforts as 2013 unfolds.
Between now and the fall of 2013, Midway will be placing the orders for
our long-lead-time equipment for Pan, such as the main electrical
substation, front-end loaders for mining and heap leach operational
equipment. We will negotiate supply contracts for the diesel fuel,
reagents and other consumables needed for Pan's operation in 2014. Our
goal is to ensure that we have the materials at cost effective prices to
meet our business plan in a timely manner.
Midway's financial team successfully raised $85-million in 2012
demonstrating the strength of our business in very difficult markets.
This capital will be used to build the Pan project and to provide
working capital to continue our overall operations. Seventy million dollars of
capital was raised as a preferred stock transaction with our strong
financial partner, Hale Capital. The team's goal was to limit common
shareholder dilution and to avoid hedging.
Since that financing, we have been working with several banks and with
Caterpillar Equipment to secure the balance of the financing needed to
finance Pan's production and operations until Pan is cash flow positive.
This effort is advancing at a steady pace and we fully anticipate having
agreements in place this summer with the funds being drawn after receipt
of permits this fall.
The team and the community
We have great properties, but one of our most important resources is our
people. We will be operating our own mines and not contracting out our
labour, allowing us to better manage and control our operations. Mines
are built by people and the Midway team that continues to grow is
experienced, driven and truly a joy to work with. It is a pleasure to
acknowledge their hard work, dedication and commitment to the company.
This recognition is important at both the operations and the community
level. Our team in Ely, Nev., has gone above and beyond to take part in
local activities and events. Their participation continues to strengthen
our relationship with the local community and we would like to recognize
their efforts. To name a few:
Safe and sober grad night volunteers;
Sponsorship of a half court shot event with the White Pine County High
Donation of football and basketball uniforms;
Sponsorship of the White Pine Gymkhana 4-H horsemanship;
Provided five scholarships to students -- two athletic and three academic;
Participated in the White Pine County fair including sponsorship of
the WPC horse races;
Purchased a beef, lamb and pig at the WPC 4-H Livestock Show and
donated a beef to the local senior centre;
For this kind of enthusiasm and dedication we are very thankful.
The road forward
Two thousand thirteen will be an exciting year for our shareholders, as we focus on
completing the permitting process that will allow the commencement of
construction in 2013 and of mining operations in 2014. Our current cash
and facilities we are putting in place will finance these activities.
The Midway story is a strong one that is gaining momentum with each new
milestone. Two thousand twelve was indeed an important year in advancing our projects
and we look forward to updating you on the progress in the coming weeks
and months ahead.
And to you, our shareholders, thank you for your continued support this
past year. On behalf of the team at Midway, we look forward to a
successful, transformational and rewarding 2013.
On behalf of the board
Kenneth A. Brunk
Kenneth A. Brunk, chairman, president and CEO
We seek Safe Harbor.
© 2014 Canjex Publishing Ltd. All rights reserved.