Midas acquisition provides cash flow

Midas paid $4 million, or approximately four times annual pre-tax cash flow, for the interest, Midas President Karl Skobe told The Northern Miner. Situated near Kingston, Ont., the operation includes three lime quarries and one leased sand operation which yield approximately one million tons of crushed lime products per year. Annual cash flow exceeds $1 million.

Other assets include a fleet of 15 trucks, two crushing plants capable of processing at 250 and 350 tons per hour, six loaders and a maintenance building on site.

Limestone reserves are sufficient for 30 years of production, Skobe says. The operation, which was privately owned, has been in operation since 1912.

Financing was provided by The Royal Bank of Canada. “The bank should be paid out in seven years,” Skobe said, adding that this is a conservative forecast. “We’re looking at doing another deal in the future.”

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