Dahlman Rose Hold On Midway Gold Corp. (MDW)

Dahlman Rose & Co. has a Hold rating on Midway Gold Corp. MDW, which just filed a $4 million equity offering. In the research note, Dahlman Rose writes, "Midway intends to offer up to 6,660,000 shares at $0.60 per share, each unit comprising one common share and one half of one non-transferable warrant. Each whole warrant will entitle the holder to purchase one common share of Midway at $0.90 per share within 24 months from the closing date. Midway can accelerate the expiry of the warrants to a date 30 days after notifying the warrant holders if the common shares of Midway trade at a volume weighted average price of greater than $1.15 per share for a period of 20 consecutive trading days. The net proceeds of the offering are intended to be used to advance Midway's projects, the company recently restructured its management to better focus on developing the Pan and Gold Rock open-pit Carlin style assets which requires $59MM in CAPEX." Shares of MDW are trading at 64 cents today.