The Idaho County Commission signed on to a community partnership agreement with Midas Gold last fall, under which in February Midas launched a foundation expected to return about one percent of Stibnite Mine profits to communities such as Yellow Pine and Riggins.
It’s not clear how much money that may be.
In April, Midas announced it provided an initial cash grant of $100,000 and issued 1.5 million common shares of its stock as outlined in the 2018 agreement. The shares are regulated, but may be sold off as early as this August – or held by the foundation in perpetuity in anticipation that the price might rise, as could happen if Midas eventually receives federal permission to produce at the old Stibnite Mine.
The Free Press published a draft copy of the agreement last November, but as of May 13, Idaho County was unable to provide the Free Press a copy signed by other communities’ governmental boards, because the county still hadn’t received a signed copy from the company.
The cities of Cascade, Donnelly, New Meadows, Council and Riggins and Adams County agreed to participate, according to a May 2 report in the McCall Star-News, while the City of McCall and Valley County are not participating in the agreement.
Beyond the initial grant, the draft called for Midas to grant the foundation $100,000 in the first quarters of 2019 and 2020, grant $100,000 within 15 days following a formal decision on the project, and grant $100,000 and an additional 1.5 million shares within 15 days following the company’s receipt of “all permits and approvals necessary for the commencement of construction.” During the year of construction, the draft calls for Midas to grant the foundation $250,000. When production begins, the draft calls for Midas to grant the foundation $500,000.
For the first full year of commercial production, Midas is to grant the foundation $500,000, according to the draft. Each year of production after that, Midas is to grant 1 percent of profits or at least $500,000 to the foundation.
Because it is unclear whether the stock has any value to the foundation apart from its potential sale, and because it is unclear if Midas actually followed through with granting the additional $100,000 the draft describes being given in the first quarter of 2019, the Free Press sought comment from the company to clarify how to total up the company’s actual and planned giving to the foundation.
The company did not return comment in time for the May 15 paper. If and when additional information is received from Midas, the Free Press will make a follow-up report.