During the early years of operation, Ledcor will provide all mining-related services, including manpower and equipment for the Pan Project at a substantial capital savings to Midway.

"Completion of this contract marks significant progress for Midway and the Pan Project," said Ken Brunk, President and CEO of Midway. "We have been working hard to reduce initial capital costs at Pan to achieve an improved return on capital for our shareholders. Entering into this contract with Ledcor goes a long way towards bringing down our pre-production capital, as we no longer need to purchase a mine fleet and the ancillary facilities associated with an owner-operated mine. Our new partnership with Ledcor will provide the highest return to our shareholders and to the local community as we build out the Company. Midway and Ledcor look forward to a long and prosperous relationship."

The 2011 Pan Feasibility Study included $29.5M budgeted for mine equipment, predominantly attributable to the mine fleet, as part of the $99M initial capital estimate.

The term of the agreement between Midway and Ledcor extends for five years. Ledcor will be directly responsible for drilling, blasting, loading, and hauling ore to the leach pad for processing by Midway. They will mobilize equipment to the site on Midway’s schedule

This partnership with Ledcor is expected to create value in many ways including:

Elimination of nearly all mine equipment expenditures, thereby reducing initial capital requirements
Deferral of supporting site infrastructure expenditures such as office buildings
The Ledcor Group of Companies is one of North America’s most diversified construction and industrial companies; serving the building, heavy industrial, civil and infrastructure, mining, pipeline, power and communications sectors. Ledcor employs more than 7000 people in over 20 offices across North America. Ledcor has been serving customers and partners since 1947, and Nevada mining clients have included, among others, the major companies Barrick and Newmont.

Pan Project, Nevada

The Pan project is a low cost, oxidized, Carlin-style gold deposit mineable by shallow open pit methods and treatable by heap leaching. A Feasibility Study was completed in November 2011. It shows the NPV of the project is robust at a range of gold prices, ranging from $123 million at $1,200/oz gold to $344 million at $1,900/oz gold. The IRR grows from 32% to 79% using the same gold price range.