The world’s second largest gold miner, Barrick Gold, on Tuesday announced that it would acquire shares in US-focused Midas Gold as part of the Vancouver-headquartered junior’s public offering of shares announced the previous day.
Barrick currently owns 46 551 731 shares of Midas, representing about 19.6% of the junior and will acquire a further 7 274 142 shares, taking its stake to about 19.9%.
Barrick would acquire the additional shares at the offering price of C$0.60 a share, for an aggregate consideration of about C$4.4-million.
Midas, which is advancing the Stibnite gold project, in Idaho, on Monday announced that it would aim to raise C$19.9-million through a bought deal public offering of 33.2-million shares.
The proceeds from the sale of the shares would be used to advance the feasibility study on, and permitting for, the redevelopment and restoration of the Stibnite project.
Paulson & Co has indicated that it will participate in the offering, to maintain its pro rata interest of 29.11% of outstanding common shares.