Barrick to acquire significant stake in Kingfisher Metals

Barrick Mining Corporation has announced its agreement to subscribe for approximately 15.47 million units of Kingfisher Metals Corp. in a non-brokered private placement, investing about C$20.9 million to strengthen its position in Kingfisher’s Highway 37 Project in British Columbia, Canada.

Each unit in this placement consists of one common share of Kingfisher Metals and one-half of a share purchase warrant, allowing Barrick to acquire additional shares at C$1.70 each within two years. Barrick, which previously did not hold any Kingfisher shares, will own roughly 9.9% of Kingfisher on a non-diluted basis and 14.1% on a partially diluted basis after the transaction, assuming full exercise of warrants.

As part of this strategic investment, Barrick and Kingfisher will enter into an investor rights agreement that grants Barrick anti-dilution and information rights related to the Highway 37 Project, provided Barrick maintains at least a 5% ownership stake. For two years following closing, Kingfisher will require Barrick’s consent before selling or transferring interests in the project, and Barrick agrees to vote its shares in line with Kingfisher’s board or abstain from voting, with certain exceptions. Barrick is also subject to an 18-month lockup on the shares issued.

The agreement further includes the creation of a technical committee and collaboration on technical support for drilling seasons in 2027 and 2028 at the Highway 37 Project. Barrick’s acquisition is for investment purposes, with potential for future adjustments to its holdings depending on market conditions.