Hercules Silver jumps on investment from Barrick Gold
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(Kitco News) - Barrick Gold (NYSE: GOLD) (TSX: ABX) announced today that it has agreed to subscribe for 21,265,370 units of Hercules Silver in a non-brokered private placement at a price of $1.10 per unit, for total consideration of $23,391,907.
According to Barrick, the company currently owns 5,291,500 common shares of Hercules, representing approximately 2.73% of Hercules’ issued and outstanding common shares on a non-diluted basis.
Following the private placement, Barrick will hold 26,556,870 common shares of Hercules and 6,804,918 warrants, representing approximately 12.33% of Hercules’ issued and outstanding common shares on a non-diluted basis, and 15.02% on a partially-diluted basis.
In its press release, Hercules Silver (TSX-V: BIG) (OTCQB: BADEF) said that the proceeds from the placement will be used by the company to explore its Hercules property located in western Idaho. Barrick will also provide Hercules Silver with technical support and expertise for the 2024 season.
The Hercules project is a disseminated silver-lead-zinc system with 28,000 meters of historical drilling across 3.5 kilometers of strike. The company said that the additional discovery of a new porphyry copper system at depth in 2023 adds “significant” upside potential to the property.
Shares of Hercules Silver are trading higher today.
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