American Barrick Resources has filed a preliminary prospectus with t he Ontario Securities Commission for a new issue of two million units at a price of $21.50 per unit, each unit to comprise one common share and two gold purchase warrants.
The financing will raise $43 million for the gold producer.
Horsham Securities, a private company which holds about a 23% interest in Barrick, will buy 450,000 of the units with the balance being purchased by Merrill Lynch Canada. Merrill Lynch plans to sell the unit to the public on an instalment basis with $12.25 due on Sept 25 and $9.25 due Jan 7, 1987.
The common shares will initially be represented by instalment receipts with delivery of share certificates to take place upon payment of the final instalment. The gold purchase warrants will be immediately detachable at closing, they will be issued in bearer form and immeddiately transferable.
Each gold purchase warrant entitles the holder to buy 0.02 troy oz of gold at $460(US) per oz for four years.
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