Barrick Gold, the worlds top miner of the precious metal, said Tuesday is buying about $ 38 million in Midas Golds shares, in a deal that gives the Canadian giant an almost 20%-stake in the junior as well as access to the promising Stibnite Gold project, in Idaho, US. Vancouver-based Midas is in the midst of renovating an old mining site in Idaho into a modern open pit mine, which is projected to create over $ 1 billion of economic value for the state and nearly 1,000 jobs.
Stibnite, which has the potential to produce over 300,000 ounces of gold per year, also contains antimony, used as a fire retardant and metal strengthener. That mineral, experts believe, may become a strategic asset for the US in its impending trade war with China.
Midas filed a plan for restoration and development of the site with authorities in 2016 and is currently completing a feasibility study for the project. It said it would use the proceeds from Barrick to complete the study and secure remaining permits for Stibnite.