Barrick invests C$20.9M for 9.9% of Kingfisher, gaining rights to the Highway 37 project in BC. The deal includes a two-year lockup and a technical committee.
Barrick Mining Corp. (B) is taking a 9.9% stake in Kingfisher Metals Corp. through a C$20.9 million private placement, the company said Monday. The investment gives Barrick rights to Kingfisher's Highway 37 project in British Columbia, a gold and copper target in the Golden Triangle district.
Under the deal, Barrick will buy 15.47 million units at C$1.35 each. Each unit consists of one common share and half a warrant. Each full warrant lets Barrick buy one more Kingfisher share at C$1.70 for two years. On a partially diluted basis, assuming all warrants are exercised, Barrick's stake would reach 14.1%.
Barrick and Kingfisher will sign an investor rights agreement. Provided Barrick holds at least 5% of Kingfisher, it gets anti-dilution protection and information rights on the Highway 37 project. For two years, Kingfisher cannot sell or transfer rights to the project without Barrick's consent. Barrick, in turn, must vote its shares in line with Kingfisher's management or abstain. A standstill limits Barrick to buying no more than 15% of Kingfisher's shares, rising to 19.9% if a third party acquires 10% or more.
Barrick also agreed to an 18-month lockup on the shares it receives. The two companies will form a technical committee, and Barrick will provide technical support for the 2027 and 2028 drilling seasons at Highway 37.
Barrick currently holds no Kingfisher shares. The investment is for general corporate purposes, the company said. Barrick may buy more Kingfisher shares or sell them depending on market conditions.
Barrick holds an Alpha Score of 70/100 on AlphaScala, a Moderate rating. The company's gold operations span 17 countries, and it is the largest gold producer in the United States. The Highway 37 project sits in the Golden Triangle, a region that has drawn major miners for its high-grade deposits. Barrick already operates in British Columbia through its Hemlo and other assets.
An early warning report will be filed under Canadian securities law, Barrick said. The deal is expected to close in the coming weeks.
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