The closing of the Subscription is subject to approval of the TSX Venture Exchange
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick”) has today filed an early warning report (the “Early Warning Report”) advising of its holdings in common shares (“Common Shares”) of Precipitate Gold Corp. (“PGC”).
On April 13, 2020, Barrick, PGC and certain affiliates of Barrick and PGC entered into an earn-in agreement (the “Earn-In Agreement”) pursuant to which Barrick has been granted the exclusive right to acquire a 70% interest in PGC’s Pueblo Grande Project in the Dominican Republic on the terms and conditions set out in the Earn-In Agreement (the “Earn-In Transaction”). In connection with the Earn-In Transaction, Barrick and PGC entered into a subscription agreement (the “Subscription Agreement”) dated April 13, 2020 (the “Reportable Event”) pursuant to which Barrick agreed to acquire, and PGC has agreed to issue to Barrick, 12,713,636 Common Shares (the “Subscription Shares”) from treasury on the terms and conditions set out in the Subscription Agreement at a price of C$0.11 per Subscription Share for an aggregate subscription price of C$1,398,500 (the “Subscription”). Prior to the Reportable Event, Barrick did not beneficially own, control or direct any Common Shares. The Subscription Shares represent 13.67% of the outstanding Common Shares (calculated on a non-diluted basis prior to giving effect to the Subscription). As a result of the Reportable Event, Barrick beneficially owns 12,713,636 Common Shares, representing 12.02% of the outstanding Common Shares (calculated on a non-diluted basis after giving effect to the Subscription). The closing of the Subscription is subject to approval of the TSX Venture Exchange.
Barrick is acquiring the Subscription Shares for investment purposes. Barrick may, from time to time, subject to an agreement between Barrick and PGC, acquire additional Common Shares or other securities of PGC or dispose of some or all of the Common Shares or other securities of PGC that it owns at such time. Other than the Earn-In Transaction, Barrick currently has no other plans or intentions that relate to or would result in any of the actions listed in paragraphs (a) through (k) of Item 5 of the Early Warning Report, but depending on market conditions, general economic conditions and industry conditions, the trading prices of PGC’s securities, PGC’s business and financial condition and prospects and/or other relevant factors, Barrick may develop such plans or intentions in the future.
Source: Company Press Release