Make Kitco Your Homepage

Mining News

Hercules Silver jumps on investment from Barrick Gold

Kitco News

Editor note Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here!

(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.

 Lundin Mining reports record copper production in Q3, cuts attributable net loss

By

Vladimir Basov

For Kitco News

Contact vbasov@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.