In March, Midas Gold made good on its commitment to add $100,000 to the Stibnite Foundation for the first quarter of 2019.
Under its agreement with eight local governments for the company to contribute more money to the foundation with each step toward restarting the old Stibnite Mine near Yellow Pine, Midas Gold gave $100,000 plus stock, to launch the foundation.
The company had noted the stock in a press release and described it in the first quarter financial information Midas published on its website. The company hadn’t detailed the other $100,000 in its first quarter report.
The agreement describes three milestones to come before Midas restarts production at the old Stibnite site, each of which is coupled to a cash payout to the foundation. Those steps – the decision by the Payette National Forest, the company’s receipt of all the needed permits, and the start of construction – would see additions of $100,000, another $100,000 plus 1.5 million shares of stock, and $250,000 each year until the start of production
The agreement calls for Midas to continue to add to the foundation each year during production, and to grant $1 million to the foundation when the work shifts to reclamation.
“Midas Gold is distributing funds to the foundation throughout the life of our project to ensure the foundation can continue long after the project is complete,” Podgorski said. “The foundation board will outline spending in such a manner to have an annual granting process for community programs and develop an endowment for the future. … The foundation will be gifted shares in the company but the annual payments are in addition to the shares.”
The foundation has so far received $200,000 in cash and 1.5 million shares of stock, according to the company; public trading of Midas stock closed May 16 at 50 cents per share.
Ahead of a May 15 Free Press report, Idaho County had been unable to provide a fully executed (signed) copy of the community agreement; the county provided a copy on May 15. The Free Press compared the signed copy to the draft upon which the May 15 newspaper article was based; the draft copy has nearly all the same text as the signed copy. Idaho and Adams counties, Cascade, Council, Donnelly, Idaho County, New Meadows, Riggins and Yellow Pine had all signed the agreement late last year.
The foundation is just one component of the agreement; the agreement also created “a mechanism and opportunity for the communities in Idaho’s west central mountains area and Midas Gold to discuss, in good faith, the potential and actual impacts of the Stibnite Gold Project on the communities. Accordingly, each party agrees to participate in the Stibnite Advisory Council, participate in the NEPA comment period for the Stibnite Gold Project and participate in the Stibnite Foundation.”
According to a synopsis of the Stibnite Advisory Council Dec. 5 meeting, which is online at midasgoldidaho.com, the $100,000 payment mentioned at the top of this story was due “in Q1/19 so not later than March 31, 2019, provided the foundation has been created.” According to public records kept by the Idaho Secretary of State, the foundation was created Feb. 26.