Business
Hercules Silver Announces Closing of Strategic Investment by Barrick Gold Corporation
Toronto, Ontario--(Newsfile Corp. - November 7, 2023) - Hercules Silver Corp. (OTCQB: BADEF) (...
About this update from Hercules Metals Corp
[{"type":"text","content":"Hercules Silver Announces Closing of Strategic Investment by Barrick Gold CorporationToronto, Ontario--(Newsfile Corp. - November 7, 2023) - Hercules Silver Corp. (OTCQB: BADEF) (FSE: 8Q7) (\"Hercules Silver\" or the \"Company\") (TSXV: BIG) today announced completion of the previously announced non-brokered private placement (the \"Placement\"), resulting in Barrick Gold Corporation (\"Barrick\") subscribing for 21,265,370 units of Hercules Silver (the \"Units\") at a price of C$1.10 per Unit for gross proceeds to Hercules Silver of C$23,391,907. The Placement represents a significant step towards the equity requirements to fund the Hercules Project and a strategic investment by Barrick in Hercules Silver.Each Unit consisted of one common share of Hercules (each, a \"Hercules Share\") and 0.32 of a common share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant has a term of two years and entitles the holder thereof to purchase one Hercules Share for a price of C$1.32 per Hercules Share.With the closing of the Placement, Barrick now owns 12.33% of the issued and outstanding Hercules Shares on a non-diluted post-transaction basis and 15.02% of the outstanding Hercules Shares on a partially-diluted post-transaction basis, assuming exercise of all Warrants. The proceeds from the Placement will be used by Hercules Silver to explore the Company's Hercules Project located in western Idaho.All securities issued in connection with the Placement are subject to a four-month-and-one-day statutory hold period expiring March 8, 2024 in accordance with applicable securities laws. In connection with the Placement, Hercules Silver and Barrick also entered into an investor rights agreement, whereby, among other things, Barrick was granted certain participation rights, top-up rights, information rights and rights of first refusal, all as more particularly described in the Company's news release dated November 6, 2023. AdvisorsGowling WLG (Canada) LLP acted as Canadian legal counsel to Hercules Silver and Davies Ward Phillips & Vineberg LLP acted as Canadian legal counsel to Barrick.About Hercules Silver Corp.Hercules Silver Corp. is a junior mining company focused on the exploration and development of the 100% owned Hercules Silver Project, northwest of Cambridge, Idaho.The Hercules project is a disseminated silver-lead-zinc ...