Midway Gold Corp.
TSX VENTURE : MDW

Midway Gold Corp.

May 18, 2006 15:26 ET

Midway Closes Private Placement for $6,705,000

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 18, 2006) - Midway Gold Corp. (the "Company") (TSX VENTURE:MDW) is pleased to announce that it has closed a private placement of 3.725 million units for proceeds of $6,705,000. As previously announced, the Company is pleased to welcome Barrick Gold Corporation and Sprott Asset Management Inc. as new shareholders in the Company. Each unit consists of one common share in the capital of the Company at a price of $1.80 per unit and includes one-half share purchase warrant. Each full warrant entitles the holder to purchase one additional share at a price of $2.70, for a term of one year, subject to the Company's right to call the warrants, on 30 days' notice, in the event the 15 consecutive day trading average of the common shares exceeds $3.25. The units will be subject to a four month hold period.

All or substantially all of the subscription funds for the private placement will be expended on further exploration of the Company's Spring Valley project in Pershing County, Nevada.

Details of Midway Gold's projects are available on the Company's website at www.midwaygold.com.

Midway Gold Corp. is a precious metals exploration company, listed as a Tier 1 issuer on the TSX Venture Exchange under the symbol "MDW". Midway focuses on the creation of value for shareholders by exploring and developing high-grade, quality precious metal resources in stable mining areas.

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 Toll Free: 1-877-692-8288
    www.midwaygold.com