Midway Gold Corp.
TSX VENTURE : MDW

Midway Gold Corp.

August 25, 2005 11:00 ET

Midway Closes $700,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 25, 2005) - Midway Gold Corp. (TSX VENTURE:MDW) is pleased to confirm that it has closed its private placement of 500,000 units at a price of $1.40 per unit (the "Units"). Each Unit is comprised of one common share and one-half non-transferable common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at a price of $1.45 per share for a period of twelve months, expiring August 23, 2006. The Company received total proceeds of $700,000. The shares, and any shares acquired upon the exercise of the warrants, will be subject to a four month hold period, expiring December 23, 2005.

The Company also confirms that all of the 1,000,000 warrants issued in August, 2004 have been exercised, at a price of $0.80/share, for proceeds to the Company of $800,000.

The funds raised by this placement and exercise of warrants will help fund the drilling currently in progress at the Spring Valley and Midway projects in Nevada. Two reverse circulation and one core rig are currently exploring the Pond, Sill, and Porphyry gold zones at the Spring Valley project. Step-outs drill holes more than 500m (1700 feet) from the known gold zones are testing new targets on the west side of the Spring Valley diatreme. The first hole has encountered strongly quartz-tourmaline altered tuff and brecciated rhyolite, near the west edge of the diatreme. One reverse circulation drill is testing extensions of the resources and exploring new targets at the Midway project. This funding will allow Midway to aggressively explore these two high-grade gold properties, in Nevada.

ON BEHALF OF THE BOARD

Alan Branham, President and CEO


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Midway Gold Corp.
    Ron Cooper
    (604) 986-0112 (Canada)
    or (877) 692-8288 (US Toll Free)
    www.midwaygold.com