Barrick, DCC boost stake in Hayes Res.

A private placement of about $1 million has given American Barrick Resources (TSE) and DCC Equities an increased stake in Toronto- based Hayes Resources (TSE).

Under the terms of the placement, Barrick and DCC Equities each acquired 769,231 Hayes common shares. Hayes has also agreed to issue to Barrick and DCC Equities the same number of common share purchase warrants entitlin g the holder to purchase one common Hayes share for a 3-year period at 72 cents per share.

As a result, Barrick and DCC Equities now own 8.9 million and 9.1 million Hayes common shares respectively which represents a combined 51% interest.

When the share purchase warrants are issued, Barrick and DCC Equities will hold warrants to buy an additional 919,231 common shares of Hayes.

“The transaction represented an opportunity to increase our holdings in Hayes Resources at an attractive price,” said Robert Wickham, Barrick’s treasurer.

The proceeds have been earmarked for the McLellan gold mine at Lynn Lake, Man., where Hayes’ 62%-owned subsidiary LynnGold Resources Inc. (TSE) is attempting to reduce costs via a new mining method.

LynnGold is installing an underground crusher and with a conversion to long-hole, open stoping almost complete, production is expected to increase this year to 56,000 oz from 40,000 oz in 1987.