Midway Gold Corp. (“Midway” or the “Company”) (MDW:TSX, MDW:NYSE-MKT) announces the selection of Ledcor CMI, Inc. (“Ledcor”) as the mining contractor at the Company’s open-pit Pan Project, Nevada. During the early years of operation, Ledcor will provide all mining-related services, including manpower and equipment for the Pan Project at a substantial capital savings to Midway.
“Completion of this contract marks significant progress for Midway and the Pan Project,” said Ken Brunk, President and CEO of Midway. “We have been working hard to reduce initial capital costs at Pan to achieve an improved return on capital for our shareholders. Entering into this contract with Ledcor goes a long way towards bringing down our pre-production capital, as we no longer need to purchase a mine fleet and the ancillary facilities associated with an owner-operated mine. Our new partnership with Ledcor will provide the highest return to our shareholders and to the local community as we build out the Company. Midway and Ledcor look forward to a long and prosperous relationship.”
The 2011 Pan Feasibility Study included $29.5M budgeted for mine equipment, predominantly attributable to the mine fleet, as part of the $99M initial capital estimate (Table 1). Following today’s announcement, it is expected that the initial capital required to get Pan into production will be materially reduced.