Published: November 17, 2023 |

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Barrick Gold Corporation has agreed to subscribe for 21,265,370 units of Hercules Silver Corp. in a non-brokered private placement at a price of $1.10 per unit, for total consideration of $23,391,907.

Barrick currently owns 2.73 percent of Hercules’ issued and outstanding common shares on a non-diluted basis. Following the private placement, Barrick will hold 12.33 percent of Hercules’ issued and outstanding common shares on a non-diluted basis, and 15.02 percent on a partially-diluted basis.

Closing of the private placement will occur on or before November 8, 2023 or such other date as may be agreed by the Barrick and Hercules, subject in each case to customary closing conditions, including receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

In connection with the private placement, Barrick and Hercules will enter into an investor rights agreement. Pursuant to the investor rights agreement, provided that Barrick maintains an ownership interest in Hercules of at least 5 percent, Barrick will be entitled to anti-dilution and information rights, as well as a right of first refusal in respect of the sale by Hercules of any interest in its 100 percent owned Hercules Silver Project, located in Washington County, Idaho.

Barrick will also, for a period of three years from the date of the investor rights agreement, either vote its Hercules common shares in accordance with the recommendations of the board or management of Hercules, or abstain from voting on such matters, and be subject to a standstill which will prohibit Barrick from acquiring more than 19.9 percent of the outstanding Hercules common shares, subject to certain exceptions.

Barrick will also be providing certain technical support and expertise to Hercules for the 2024 season and program.

Barrick Gold Corporation engages in the exploration, mine development, production, and sale of gold and copper properties. It has ownership interests in producing gold mines that are located in Argentina, Canada, Côte d’Ivoire, the Democratic Republic of Congo, the Dominican Republic, Mali, Tanzania, and the United States. The company also has ownership interests in producing copper mines located in Chile, Saudi Arabia, Zambia, and various other projects located throughout the Americas, Asia, and Africa. Barrick Gold Corporation was founded in 1983 and is headquartered in Toronto, Canada.

Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100 percent owned Hercules Silver Project, northwest of Cambridge, Idaho. The additional discovery of a new porphyry copper system at depth in 2023 adds significant upside potential to the property. The company is well positioned for growth through the drill bit, having completed extensive surface exploration consisting of soil and rock sampling, geological mapping, IP geophysics. The company’s management team brings significant exploration experience through the discovery and development of numerous precious metals projects worldwide.

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