Barrick Gold Corporation (NYSE:ABX) To Raise $3.45B

Posted by Samantha Donahue November 1, 2013 0 Comment 949 views

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.

About Samantha Donahue

Samantha Donahue is a digital fellow with GDP insider. Samantha earned a Bachelor's degree in Government from Cornell University and later his Master's degree in Journalism from Columbia University. She has also received numerous awards from the Associated Press, Society of Professional Journalists, and other media organizations for many of her exclusive stories. Samantha thrives reporting on breaking news and as a general assignments news reporter.

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