Barrick warns investors not to accept mini tender

BARRICK Gold warned shareholders on Monday against accepting a ‘mini-tender’ for five million of its shares by TRC Capital Investment Corp.

The offer was made at a 4.52% and 4.38% discount to its share price at it closed before the mini-tender on the Toronto and New York stock exchanges respectively.

Barrick said mini-tenders of this ilk were designed to avoid investor protections regarding disclosures applicable to most take-over bids and tender offers under Canadian and US securities legislation.

TRC launched similar below market value offers to unsuspecting investors of pharmaceutical company Merck as well as Fortive, an industrial technology firm and GE Vernova, a renewable energy company.

The aim is to take advantage of investors who may not compare the offer price against the market value of Barrick shares.

Barrick shares were being sought at C$21.35 per share by TRC Capital. Five million shares is equal to about 0.29% of the gold producer.

“Barrick does not endorse this unsolicited offer, is not in any way affiliated or associated with TRC Capital or its offer, and recommends that shareholders do not tender their shares to this unsolicited mini-tender offer,” it said.

Shares in Barrick are currently trading at $22.70/share in early Toronto trade, a decline of about 1.78%. Over the last 12 months the stock is 3.9% lower despite a thriving gold price which gained about 27% last year.

It is now seven days since Barrick warned it might have to suspend production at Loulo-Gounkoto if Mali’s government failed to lift new restrictions placed on the operation “within the coming week”.

In December, Mali’s military junta imposed an export blockade on gold shipments from Loulo-Gounkoto, a 510,000 to 560,000 ounce a year operation which is considered one of Barrick’s tier one mines. This followed the issue by the government of a warrant for arrest of Mark Bristow, CEO of Barrick Gold.

Barrick said on January 6 that in addition to December’s shipping restriction, an interim attachment order had been issued against existing gold stock on site. “Barrick believes the interim attachment order is unwarranted and is in contravention of the agreed dispute resolution mechanisms,” it said.