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Barrick warns shareholders against unsolicited mini-tender offer by TRC

13th January 2025

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Canadian miner Barrick Gold has cautioned shareholders against an unsolicited mini-tender offer from TRC Capital Investment to purchase up to five-million of its common shares.

The offer represents about 0.29% of Barrick’s outstanding shares and is priced below market value at C$21.35 a share.

In a statement on Monday, Barrick said that it did not endorse or associate with the mini-tender offer and advised shareholders not to tender their shares.

The offer price reflects a discount of about 4.52% and 4.38% to the closing prices of Barrick shares on the TSX and NYSE, respectively, on January 7.

Mini-tender offers, like the one initiated by TRC Capital, typically fall below thresholds that would trigger investor protections under Canadian and US securities laws. Regulators, including the Canadian Securities Administrators and the US Securities and Exchange Commission (SEC), have previously expressed concerns about mini-tender offers.

The SEC has issued "tips for Investors" regarding mini-tender offers, noting that some bidders, in making the offers at below-market prices, are "hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price”.

Barrick said that shareholders which already tendered their shares could withdraw them before 11:59 p.m. (Toronto time) on February 6, by following the procedures outlined in TRC Capital's offer documents.

Edited by Creamer Media Reporter

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