Barrick Mining (NYSE:B) has entered a non-brokered private placement for 15,470,934 units of Kingfisher Metals (TSX-V:KFR) for a total consideration of C$20.8 million ($21 million).
Barrick’s C$1.35-per-unit purchase marks its first equity entry into Kingfisher, giving the major a 9.9% stake on a non-diluted basis and 14.1% on a partially diluted basis, assuming full exercise of the warrants it holds.
The two companies are entering into an investor rights agreement in connection with the private placement. Provided Barrick maintain san ownership interest in Kingfisher of at least 5%, Barrick will be entitled to anti-dilution and information rights with respect to Kingfisher’s Highway 37 Project, located in British Columbia, Canada.
Additionally, for a period of two years following the closing of the private placement, Kingfisher will be restricted from selling or transferring any right or interest in Highway 37 without prior consent from Barrick.
For the same two-year period, Barrick will be bound by a standstill, preventing it from increasing its ownership beyond 15% of Kingfisher’s outstanding shares, unless a third party acquires 10% or more, in which case the limit rises to 19.9%.
Barrick notes that it is acquiring these units for investment purposes and may acquire additional shares or other securities of Kingfisher.
Barrick Mining is a global mining, exploration, and development company with a large portfolio of gold and copper assets across 17 countries and five continents.
Kingfisher Metals is an exploration company focused on systematically exploring district-scale gold and copper properties in British Columbia.
Write to Amy Rotman at Mining.com.au
Images: Kingfisher Metals
