Canadian gold producer Barrick Gold has bought seven million warrants to acquire shares in Hercules Silver for C$6.58m ($4.76m).
The warrants were exercised immediately at C$0.11 per share in Hercules Silver.
With this investment, Barrick’s stake in Hercules will increase from 12.33% to 15.09% on a non-diluted basis and 17.61% on a partially diluted basis, representing around 33.5 million shares and 6.8 million warrants.
Before the acquisition and exercise of the warrants, Barrick owned 26.5 million shares and 6.8 million warrants in the company, constituting a 12.33% stake.
The gold producer said it had purchased the shares for investment purposes.
It also stated that based on market conditions and other factors, it will acquire additional shares, warrants or other securities in the company or sell some or all of them.
