Key Developments: Barrick Gold Corporation (ABX.TO)
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Latest Key Developments
Barrick Gold Corp.'s African Barrick Gold In $1 Billion London IPO-Reuters
Reuters reported that African Barrick Gold, a spin-off of Barrick Gold Corp. has launched a London listing to raise about $1 billion that values its assets at about $4 billion. African Barrick Gold which announced its intention to float last week, started pre-marketing the initial public offering (IPO) on Monday. The Company is offering 25% of its enlarged share capital in a deal arranged by J.P. Morgan and Morgan Stanley. Bookbuilding is set to run between March 5 and March 18. African Barrick Gold plans to use the IPO proceeds to repay debt and is expected to hold a net cash of $280 million after the listing.
Barrick Gold Corp. Updates FY 2010 Production Guidance; Announces Creation Of African Barrick Gold Whose Equity It Will Seek To List With The United Kingdom Listing Authority
Barrick Gold Corp. announced that its production is expected to increase to 7.6-8.0 million ounces in fiscal 2010. Barrick also announced the creation of African Barrick Gold (ABG), a new company whose equity it will seek to list with the United Kingdom Listing Authority and to admit to trading on the London Stock Exchange, subject to market conditions. ABG also intends to seek a future listing on the Dar es Salaam Stock Exchange in Tanzania. In each case, the new listing will be subject to ABG fulfilling all of the listing requirements of the London Stock Exchange and the Dar es Salaam Stock Exchange as applicable. African Barrick Gold will hold Barrick's African gold mines and exploration properties. ABG will offer approximately 25%(12) of its equity in an IPO and Barrick will retain the remaining interest. The pricing and terms are yet to be determined; however, the offering is expected to be priced in late March, with closing expected to occur by the end of March. ABG is expected to have an initial cash balance of $0.28 billion and the net offering proceeds will be paid to Barrick. ABG will offer approximately 25% of its equity in an initial public offering (IPO) and Barrick will retain the remaining interest.
Tusker Gold Ltd Announces Voting Power Of Barrick Gold Corporation
Tusker Gold Ltd announced that Barrick Gold Corporation holds 20,000,000 ordinary shares representing 20% voting right in the Company.
Indago Resources Limited Agrees To Sell Tusker Gold Limited Stake To Barrick Gold Corporation Via Pre Bid Acceptance And Off Market Takeover
Indago Resources Limited announced that it has entered into a Pre Bid Acceptance Agreement with Barrick Gold Corporation (Barrick) in respect of 17,500,000 Tusker Gold Limited shares it presently holds. Under the Pre Bid Acceptance Agreement, Indago will receive $0.80 cash per Tusker share from Barrick representing a $0.60 pre tax profit on the $0.20 subscription price paid by Indago in the Initial Public Offer which closed on December 4, 2009. The pre tax cash proceeds of the transaction will deliver $14,000,000.00 to Indago. Indago has also notified Tusker that it intends to accept the Barrick Offer for its remaining 50,000,000 Tusker Gold shares which represent 50% of the issued capital of Tusker, in the absence of a superior proposal. If the Barrick takeover is successful, Indago will receive pre tax cash proceeds of $54,000,000 representing $0.543 per Indago share. The Board is presently obtaining tax advice in relation to the company’s tax liability from this transaction.
Barrick Gold Corp. Announces Pre Bid Acceptance Agreement With Blue Capital Limited To Acquire Tusker Gold Limited Shares
Barrick Gold Corp. announced that it has entered into a Pre Bid Acceptance Agreement with Blue Capital Limited in respect of 2,000,000 Tusker Gold Limited shares Blue Capital holds. Tusker Gold Limited is subject to an off market takeover offer from Barrick at $0.80 cash per share. The takeover offer is subject to a number of conditions. Under the terms of the Pre Bid Acceptance Agreement, Blue Capital Limited will receive $0.80 cash per share from Barrick which represents a 90% premium to the closing price of Tusker shares of $0.42 on January 29, 2010, being the last trading day for Tusker shares prior to the announcement of the Offer. If the Barrick off market takeover is successful, Blue Capital will receive pre tax proceeds of $1,600,000, representing $0.01 per Blue Capital share.
New Gold Inc. Receives Statement of Claim From Barrick Gold Corp.
New Gold Inc. announced that it has received a statement of claim filed by Barrick Gold Corp. in the Ontario Superior Court of Justice, against New Gold Inc., Goldcorp Inc. Goldcorp) and affiliated subsidiaries. The claim relates to the El Morro transaction announced by New Gold Inc. and Goldcorp on January 7, 2010 and New Gold's exercise of its Right of First Refusal on the El Morro copper-gold project in Chile. New Gold is unaware of any fact or circumstance that would support any of the allegations being made by Barrick Gold Corp. and believes that the claim is completely without merit. New Gold intends to defend this action using all available legal avenues.
Barrick Gold Corp. Appeals Court Remands Decision To District Court On Cortez Hills Project
Barrick Gold Corp. announced that the United States Court of Appeals for the Ninth Circuit released an opinion on December 3, 2009, with respect to the U.S. Bureau of Land Management (BLM) approval of Barrick's Cortez Hills project in Nevada. The Appeals Court ruled that the order of the District Court denying preliminary injunctive relief and permitting construction of the project is affirmed in part and reversed in part. The Company is currently evaluating the decision and considering its legal options. The plaintiffs have previously dismissed their Religious Freedom Restoration Act claims, leaving only claims under the Federal Land Policy and Management Act (FLPMA) and challenges to the federal government's Environmental Impact Statement process. The Appeals Court affirmed the District Court findings in favor of Barrick with respect to FLPMA, agreeing that the plaintiffs have not established a likelihood of success on the merits.
Barrick Gold Corp. To Take Charge In Q4 2009; Issues FY 2010 Gold Production Guidance-Reuters
Reuters reported that Barrick Gold Corp. announced that it would take a $300 million charge in the fourth quarter of 2009, related to the unwinding of the gold hedges. The Company also said it expects gold production in fiscal 2010 of 7.7 million to 8.1 million ounces at lower total cash costs than in 2009.
Barrick Gold Corp. May Sell Non Core Assets-Reuters
Reuters reported that Barrick Gold Corp. could sell off a nickel project in Tanzania and other non-core assets to fund other projects or acquisitions.
Barrick Gold Corp. Could Sell Non Core Assets-DJ
Dow Jones reported that Barrick Gold Corp. has identified assets that are non-core but still represent value to the Canadian gold producer, according to a spokesman. Barrick Gold Corp.'s Executive Vice President in charge of Corporate Communications said that no specific assets have been identified for sale but Aaron Regent, Barrick Gold Corp.'s Chief Executive, said during a presentation to analysts on October 29, that that some assets could be sold.
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