Barrick Gold (TSX, NYSE:ABX), the world’s top bullion producer by volume, has agreed to buy a 12.5% stake in fellow Canadian miner Royal Road Minerals (TSX-V:RYR) in a shares-deal worth about Cdn$1.6 million (roughly $1.3 million at today’s rates).
The transaction will see Barrick acquire 9,875,876 ordinary shares of Royal Road in a non-brokered private placement at a price of $0.16 per unit for total consideration of Cdn$1,580,140.
Depending on market conditions and other factors, including Royal Road’s business and financial condition, Barrick said it might, subject to the investor rights agreement “acquire additional ordinary shares or other securities of Royal Road,” it said in the statement. It added it might also dispose of some or all of the ordinary shares or other securities that Royal Road owns at such time.
“We were pleased when Barrick made its initial investment in the company and are now even more pleased that Barrick will participate in our current financing as a strategic shareholder,” Tim Coughlin, President and CEO of Royal Road Minerals, said in a separate statement.
He noted that the proceeds from Barrick’s private placement and financing would be used for exploration and development of his company’s projects in Colombia and Nicaragua.
Source: Mining.com
