Barrick Gold has announced its plans for further investment with the acquisition of 7.2 million common shares of mining exploration company Midas Gold.
It currently owns 46.5 million common shares of Midas Gold, representing approximately 19.6% of the latter’s outstanding common shares.
The offering is expected to close on or before 19 June. After the offering, Barrick will own 19.9% of Midas Gold’s outstanding common shares on a non-diluted basis.
Barrick will acquire additional common shares of Midas Gold for C$4.4m ($3.3m), with each share priced at C$0.6 ($0.45).
According to Barrick, it is purchasing the common shares for investment purposes.
Based on market conditions and other factors such as the business and financial conditions of Midas Gold, Barrick may purchase additional common shares or other securities of Midas Gold or divest some or all of the common shares or other securities of Midas Gold.
The purchase or divestment is subject to the terms of the investor rights agreement earlier entered by Barrick and Midas Gold.
The closing of the transaction is subject to regulatory approval of the Toronto Stock Exchange.
Barrick is a mining company headquartered in Toronto, Canada. It has operations in countries such as Australia, Côte d’Ivoire, Democratic Republic of Congo, Dominican Republic, Mali, Papua New Guinea, Peru, Saudi Arabia, Senegal, the US, and Zambia.
Through its fully owned subsidiaries, Midas Gold focuses on the exploration, site restoration and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho.