Midas Gold appoints CEO and six new directors

Midas Gold Corp. [MAX-TSX] released a corporate update Friday December 4 saying it has appointed six new directors and named Laurel Sayer as the company’s new President and CEO. Laurel, who replaces Stephen Quinn, is currently President and CEO of the company’s wholly-owned subsidiary Midas Gold Idaho Inc.

The appointments are part of a transition agreement between the company and Paulson & Co., a New York-based private investment management firm which has provided the company with US$66 million to support the development of its Stibnite Gold Project in Idaho. Paulson currently manages funds that hold 209.4 million shares of Midas, representing a 44.1% stake in the company.

Roughly two weeks ago, Paulson issued a news release calling for the board to show leadership at the top by refreshing itself with more U.S. and specifically Idaho-based directors, and by adding people with skills that Paulson believes would better align with the future direction of the company. Paulson has also been pushing to have the Canadian company re-domiciled to the U.S.

Midas said the new slate of directors will assist the company in moving its Stibnite Gold Project through the remaining phase of permitting under the National Environmental Policy Act and into construction and operations.

On Friday, Midas shares eased 1.7% or $0.02 to $1.14 on volume of 217,727. The shares are currently trading in a 52-week range of $2.04 and 23.5 cents.

Midas Gold’s key asset is the Stibnite Gold Project in a historic mining district in central Idaho, about 150 km northeast of Boise. In 2014, a prefeasibility study (PFS) indicated that project could be developed into a large-scale, long-life, low-cost open pit gold mine producing 388,000 ounces of gold in the first four years and 337,000 ounces annually over its life span.

The following five directors have been appointed to fill board vacancies: Bob Dean, David Deisley, Jeff Malmen, Chris Robinson, and Alex Sternhell. In addition to being names President and CEO, Laurel Sayer has also been appointed a director of the company. All of the six are residents of the United States.