Barrick Gold (TSX: ABX) has doubled down on its investment in Hercules Silver (TSXV: BIG). The mining major this morning disclosed it has now exercised certain warrants it acquired in the junior explorer, increasing its stake in the company further.
Barrick is now reporting that on November 10, it acquired an additional 7.0 million warrants in Hercules that had an exercise price of $0.11 per share, which were exercised in full. Barrick paid total consideration of $6.58 million to acquire the warrants.
The transaction has increased Barrick’s stake in Hercules to 33.56 million shares and a further 6.8 million warrants, resulting in an ownership stake of 15.09% of the currently outstanding shares, and 17.61% on a partially diluted basis.
The ownership increase follows Barrick on November 6 taking a 12.3% stake in the issuer via an investment of $23.4 million at a price of $1.10 per share.
Hercules Silver last traded at $1.15 on the TSX Venture.
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