TORONTO (miningweekly.com) – Gold giant Barrick Gold has entered into an underwriting agreement to issue $750-million in notes that will mature in 2019, the firm said on Thursday.

The offering is expected to close on March 24, and is being underwritten by a syndicate led by Morgan Stanley & Co, JP Morgan Securities and Citigroup Global Markets.

Barrick, the world's biggest gold producer, will use the cash raised to fund construction at the firm's projects and to invest in subsidiaries, the group said.

The firm ended 2008 with a cash balance of $1,4-billion, after completing its biggest ever bond offering - $1,25-billion – in September, and had an undrawn $1,5-billion line of credit when it reported annual results in February. Net debt stood at $2,9-billion.

Toronto-based Barrick, whose new CEO Aaron Regent took office in January, will start up the first of three new mines in the second quarter of this year, when it begins production at the Buzwagi operation, in Tanzania.

After that, the next big milestone will be production in the first quarter of 2010 at the $500-million Cortez Hills mine, in Nevada, followed by the start-up of Pueblo Viejo, in the Dominican Republic, in late 2011.

Shares in the company rose 2,28% on Thursday, to C$40,76 apiece by 14:12 in Toronto.

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