Midway Gold, Nevada Talon win court OK of joint venture interest sale

By Caroline Salls

Pittsburgh, Dec. 16 – Midway Gold US Inc. and debtor Nevada Talon LLC received court approval of the sale of Nevada Talon’s 30% interest in its Spring Valley joint venture, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Colorado.

Nevada Talon’s interest will be sold to Waterton Precious Metals Fund II Cayman, LP indirect wholly owned subsidiary Solidus Resources, LLC.

Total consideration will include a credit bid of up to $5 million in obligations owed under credit documents, cash equal to the greater of the sum of a $25 million base price and an excess consideration amount over the credit bid amount, plus assumption of liabilities.

Nevada Talon’s Spring Valley joint venture partner is Barrick Gold Exploration, Inc. According to the sale motion, Solidus has also executed an asset purchase agreement with Barrick to acquire its 70% interest in the Spring Valley project, meaning Solidus will own 100% of the project.

Both sales are expected to close on Dec. 17.

Midway, based in Vancouver, B.C., is a development-stage company that acquires, explores and develops gold and silver mineral properties in North America. The company filed for bankruptcy on June 22 under Chapter 11 case number 15-16835.

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