Idaho Gold Properties & Financing

cnw


/NOT FOR DISTRIBUTION IN THE UNITED STATES/


Consolidates Major Gold District with 3 Significant Gold Deposits &
District-wide Exploration Potential


VANCOUVER, April 6 /CNW/ - Midas Gold Corp. ("Midas Gold", a private BC company), Midas Gold, Inc. ("Midas", a private Washington state company) and Vista Gold Corp. ("Vista", TSX & NYSE Amex Equities: VGZ) today announced that they have
completed a transaction whereby Midas, which owned the Hangar Flats and
West End deposits in Idaho, and the US subsidiaries of Vista, which
owned the Yellow Pine deposit adjacent to Midas' properties, became
wholly owned subsidiaries of Midas Gold in accordance with the terms of
an agreement ("the Combination Agreement"), the details of which were
announced February 23, 2011. In addition, Midas Gold has completed a
private placement financing with institutional and individual investors
comprised of approximately 6.1 million shares at C$2.50 per share for
gross proceeds of approximately C$15.3 million.


"The completion of these transactions brings all of the known mineral
deposits in the Stibnite-Yellow Pine gold district under one roof, and
provides the financial capacity to evaluate the true potential of this
significant gold district, unconstrained by artificial property
boundaries," said Stephen Quin, President & CEO of Midas Gold. "Midas
contributed the Hangar Flats and West End gold deposits, with their
significant gold mineral resources, along with its extensive and highly
prospective land holdings, to Midas Gold, while Vista contributed its
Yellow Pine deposit, the largest gold deposit in the district," he
said. "With its strengthened balance sheet following the closing of
the private placement financing, Midas Gold is well positioned to more
fully define and potentially expand all three known gold deposits,
which remain open along strike and to depth. In addition Midas Gold
intends to evaluate the potential of the district for the discovery of
entirely new deposits, supported by an extensive exploration database
covering Midas Gold's land holdings in the district."


Financing


Contemporaneously with the closing of the Combination Agreement, Midas
Gold completed a non-brokered private placement financing with
approximately 171 institutional and individual investors subscribing to
an aggregate of 6,129,800 common shares at a price of C$2.50 per share,
for gross proceeds of C$15,324,500. A finder's fee is payable in
respect of certain of these funds.


Combination Agreement


As reported on February 23, 2011, the reorganization of the ownership of
the Stibnite-Yellow Pine district was to be effected pursuant to the
Combination Agreement among Midas, Midas Gold, Vista Gold U.S., Inc.
and Idaho Gold Resources, LLC, under a plan of share exchange to be
approved by the shareholders of Midas at a special meeting. Additional
details in respect of the Combination Agreement are contained in the
news release referred to above and the proxy statement mailed to
shareholders.


Results of Shareholders Meeting


On April 1, 2011, Midas held the special meeting of its shareholders and
approved the matters contemplated in the Combination Agreement. Of the
43,827,000 shares issued and outstanding on the record date for the
meeting, a total of 35,627,000 shares were present at the meeting in
person or by proxy, representing 81.2% in Midas, of which all were
voted in favour, with none voting against or abstaining.


Capitalization of Midas Gold Corp.


As a result of the completion of the Combination Agreement, the private
placement financing and the exercise of certain options in Midas
between the date of the shareholders meeting and closing, Midas Gold
currently has 84.94 million shares issued and outstanding which, with
8.05 million options and warrants outstanding, gives Midas Gold a fully
diluted 92.99 million shares on a fully diluted basis, as follows:









As of April 6, 2011






Shares Issued & Outstanding


84,994,415





Options


600,000





Warrants


7,450,000





Fully Diluted Shares


92,994,415





As of the closing of the transaction, Vista owns 31,802,615 shares of
Midas Gold, representing 37.4% of the shares issued and outstanding on
April 6, 2011, and 34.2% of the shares on a fully diluted basis.


Website & Presentation


Midas Gold's website has recently been updated and can be viewed at http://www.midasgoldinc.com/">www.midasgoldinc.com, which includes an updated corporate presentation reflecting the
completion of the transactions discussed in this news release.


About the Golden Meadows Project


The Stibnite-Yellow Pine gold district lies at the intersection of major
regional fault systems and lies on the margin of the western ring
fractured margin of the Tertiary Thunder Mountain caldera complex.
Gold mineralization within the Golden Meadows Project appears to be
related to an intrusion related, gold-rich system overprinted by a
younger, epithermal gold system with increased silver and antimony.
Historic production from the district is estimated at approximately one
million ounces of gold, along with significant by-products of silver,
antimony and tungsten, primarily from underground higher-grade
gold-antimony production at Hangar Flats from 1925-38, open pit mining
at Yellow Pine from 1938-52, and from heap leaching of oxide gold
occurrences, including West End, Garnet Creek and Homestake, from 1974
to 1997. The deeper sulphide gold potential has seen little modern
exploration. The principal gold deposits identified to date within the
Golden Meadows Project are the Hangar Flats, West End, and Yellow Pine
deposits, all of which are associated with significant structural
corridors. In addition, numerous other gold targets have been
identified, with potential for both shallow oxide mineralization and
deeper sulphide potential.


As noted in the February 22, 2011 news release by Midas, all three
deposits in the Stibnite-Yellow Pine gold district remain open to
expansion, with opportunities to expand all of the three currently
known gold deposits along strike and to depth. Further, there is
potential to discover entirely new deposits based on information
contained within an extensive exploration database.


Compliance with National Instrument 43-101


The technical information in this news release has been prepared in
accordance with Canadian regulatory requirements set out in National
Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President
and CEO of Midas Gold, Inc. and Midas Gold Corp. The exploration
activities at the West End deposit were carried out under the
supervision of Christopher Dail, C.P.G., Qualified Person and Project
Manager for the Golden Meadows Project.


For readers to fully understand the information in this news release,
they should read the relevant Technical Reports in their entirety,
including all qualifications, assumptions and exclusions that relate to
the information set out in this news release which qualifies the
Technical Information. Readers are advised that mineral resources that
are not mineral reserves do not have demonstrated economic viability.
The Technical Reports are each intended to be read as a whole, and
sections should not be read or relied upon out of context. The
technical information in those reports is subject to the assumptions
and qualifications contained in the Technical Reports.


Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates do not account for
mineability, selectivity, mining loss and dilution. These mineral
resource estimates include inferred mineral resources that are
considered too speculative geologically to have economic considerations
applied to them that would enable them to be categorized as mineral
reserves. There is also no certainty that these inferred mineral
resources will be converted to the measured and indicated categories
through further drilling, or into mineral reserves, once economic
considerations are applied.


The mineral resources at Golden Meadows are contained within areas that
have seen historic disturbance resulting from prior mining activities.
In order for Midas to advance its interests at Golden Meadows, the
project will be subject to a number of Federal, State and local laws
and regulations and will require permit to conduct its activities.
However, Midas is not aware of any environmental, permitting, legal or
other reasons that would prevent it from advancing the project at this
time.