GRP Minerals Acquiring Midway Gold Assets

DENVER, CO - Midway Gold Corp. reported that GRP Minerals, LLC has agreed to purchase various mineral properties of the Company's subsidiaries. GRP acquired the assets by submitting a Stalking Horse Bid and the Company did not receive any competing bids that qualified as higher and better than GRP's binding offer. The United States Bankruptcy Court for the District of Colorado (the Court), where the Company and its subsidiaries filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code on June 22, 2015, entered an order on May 13, 2016, that allows the parties to proceed with the transactions.

The assets that are the subject of the arrangement include the following projects: Pan Project, Gold Rock Project, Pinyon Project and the Golden Eagle Project.

The purchase price and terms include: Cash of $5.25 million less applicable cure amounts and transfer taxes (if any), assumption of estimated reclamation liability of approximately $16.1 million, and assumption of certain other assumed liabilities.

The transactions are subject to customary covenants and conditions precedent required prior to closing. Moelis & Company acted as financial advisor to Midway on the transactions.