Barrick Gold Corporation (NYSE:ABX) To Raise $3.45B
Barrick Gold Corporation (NYSE:ABX), the largest gold producer announced its plans to sell company shares to raise almost $3.45B. These funds will help in reducing its debts that had risen this year as global gold prices took a dive. The company had agreed to sell 163.5M shares at 18.35/share. This transaction is being dubbed a brought-deal and a consortium that led by Barclays Plc, GMP Securities & RBC Capital Markets will be the underwriters. Barrick Gold Corporation (NYSE:ABX) has confirmed this sale in a statement.
Included in this sale, is an overallotment 24.5M additional shares. Post the 21% dip in gold prices this year, Barrick Gold Corporation (NYSE:AB) faced a great deal of fire. Jamie Sokalsky, the Chief Executive Officer had explored several cost cutting options like selling the company’s stake in copper and selling its interest in a suspended-project that was worth $8.5 billion. According to people in the know, this stake is in the company’s Pascua-Lama project. Barrick Gold Corporation (NYSE:ABX) had halted operations at the mine to conserve its finances.
About the company
Barrick Gold Corporation (NYSE:ABX) is involved in producing and selling gold and in its related activities, like exploration & mine development. The company also produces copper, primarily from the Lumwana and Zaldivar mines & holds other interests like the nickel development project that is located in Africa. Barrick Gold Corporation (NYSE:ABX) business is organized into these operating segments: 1) 4 regional gold businesses, 2) A global copper business-unit, 3) An oil and gas business, and 4) A capital projects group.
Its producing gold-mines are concentrated in 3 regional business units – 1) North America, 2) South America, and 3) Australia Pacific. The company’s Copper business unit that contains producing copper mines is located in Zambia and Chile. Barrick Gold Corporation (NYSE:ABX)’s North American RBU is made up of Cortez, and 60 percent stake in the new Pueblo Viejo-mine.