Barrick Closes Innovative Gold and Silver Streaming Transaction with Royal Gold
Oct 1 15
Barrick Gold Corporation announced that it has closed its previously announced gold and silver streaming transaction with RGLD Gold AG, a wholly-owned subsidiary of Royal Gold Inc., for production referenced to Barrick's 60% interest in the Pueblo Viejo mine. Barrick has received an upfront cash payment of $610 million and will receive continuing cash payments for gold and silver delivered under the agreement. Proceeds from the transaction will be used to reduce debt. Distinctive characteristics of the agreement include: Significant upside price participation for Barrick. Not subject to a Barrick guarantee, and not treated as a debt-like obligation. Obligation of Barrick to sell gold and silver under the agreement is serviced using after tax cash flow being remitted from the Dominican Republic. Under the terms of the agreement, Barrick will sell gold and silver to Royal Gold equivalent to: 7.5% of Barrick's interest in the gold produced at Pueblo Viejo until 990,000 ounces of gold have been delivered, and 3.75% thereafter. 75% of Barrick's interest in the silver produced at Pueblo Viejo until 50 million ounces have been delivered, and 37.5% thereafter. Silver will be delivered based on a fixed recovery rate of 70%. Silver above this recovery rate is not subject to the stream.
Barrick Gold Corporation Commences Cash Tender Offer for Specified Series of Outstanding Notes
Sep 29 15
Barrick Gold Corporation announced that it and certain of its subsidiaries have commenced a cash tender offer (the Tender Offer) for specified series of outstanding notes (the Notes). The terms and conditions of the Tender Offer are described in an offer to purchase (the Offer to Purchase) and the related letter of transmittal (the Letter of Transmittal), each dated September 29, 2015. Barrick, Barrick North America Finance LLC and Barrick (PD) Australia Finance Pty Ltd. (together, the Offerors) are offering to purchase for cash the series of Notes set out in the table below for an aggregate purchase price (including principal and premium) of up to $750,000,000, as such amount may be increased by the Offerors, plus accrued and unpaid interest on the Notes from the last applicable interest payment date up to, but not including, the settlement date. The amount of a series of Notes that is purchased in the Tender Offer will be based on the order of priority (the Acceptance Priority Level) for such series of Notes as set fourth in the table below, with 1 being the high Acceptance Priority Level and 7 being the lowest Acceptance Priority Level. In addition, the aggregate principal amount relating to the offer to purchase the series of Notes with Acceptance Priority Level 2 (the Priority 2 Notes) will be limited to $275,000,000 (such principal amount, the Priority 2 Tender Cap). If there are sufficient remaining funds to purchase some, but not all, of the Notes tendered of any series (other than the Priority 2 Notes), the amount of Notes purchased in that series will be subject to proration using the procedure more fully described in the Offer to Purchase. In addition, if Priority 2 Notes are validly tendered and not validly withdrawn such that the aggregate principal amount to be purchased of such Priority 2 Notes would exceed the Priority 2 Tender Cap, the amount of Priority 2 Notes purchased will be subject to proration using the procedure more fully described in the Offer to Purchase. The Tender Offer will expire at midnight, New York City time, on October 27, 2015, unless extended (such date and time, as the same may be extended, the Expiration Date). Holders of Notes must validly tender and not validly withdraw their Notes at or prior to 5:00 p.m., New York City time, on October 13, 2015 (such date and time, as the same may be extended, the Early Tender Date), to be eligible to receive the applicable Total Consideration, which includes an early tender premium of $30.00 per $1,000 of principal amount of Notes accepted for purchase (the Early Tender Premium). Holders of Notes who tender their Notes after the Early Tender Date, but at or prior to the Expiration Date, will be eligible to receive only the applicable Tender Offer Consideration, which is an amount equal to the Total Consideration minus the Early Tender Premium. The Total Consideration or Tender Offer Consideration, as applicable, will only be paid to holders of tendered Notes to the extent that the applicable Offeror accepts such Notes for purchase.
Newmont Not Interested In Barrick Assets
Sep 22 15
Newmont Mining Corporation (NYSE:NEM) is not interested to buy Unites States assets of Barrick Gold Corporation (TSX:ABX). Gary Goldberg, Chief Executive of Newmont said, "If we were to be interested in Barrick's assets, it wouldn't be those particular assets." Newmont Mining would be keen on Barrick's 50% stake in an Australian mine at the right price, Newmont Chief Executive Gary Goldberg said.