Canada’s Barrick Gold (TSX:ABX)(NYSE:GOLD), the world’s top bullion producer by volume, has dropped its 10.7% stake in fellow miner Royal Road Minerals (TSX-V:RYR) for a total of C$4.3 million (about $3.3m).
The Toronto-based miner, which acquired 22,576,161 ordinary shares in the gold junior last year, said the pre-arranged transaction was made through the TSX Venture Exchange and valued each share sold a 0.19 Canadian dollars.
The investment in Royal Roads, which has projects in Colombia and Nicaragua, was part of a trend that dominated the mergers and acquisition scene last year and extended to the first few months of 2019.
Gold miners across the globe embarked on so-called “strategic investments” in juniors, in the hope that they would eventually pay off in the form of much needed added production.
In those cases, seniors make a rather low-risk bet without jeopardizing huge amounts of capital, and juniors are able to raise much-needed money to fund their projects.
Barrick has led quite a few strategic agreements as of late, including an $8.3-million investment last year on ATAC Resources Ltd. and a $9.1-million one on Reunion Gold (TSX-V:RGD).
In May, the gold giant bought a 19.9% stake in Vancouver-based Midas Gold (TSX-V:MAX), for about $38 million.
from MINING.COM https://ift.tt/2I0AoA1
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