American Barrick Resources is swallowing another gold producer — its sixth acquisition since 1983 — as it continues to increase its gold production.
The non-cash transaction will see each share of Pancana Minerals exchanged for 0.476 shares of Barrick. Pancana has about four million shares outstanding.
Pancana is a Toronto Stock Exchange-listed company engaged in gold mining in Nevada and precious metals exploration in the U.S. and South America.
The acquisition is subject to each company receiving opinions from their respective advisors on the fairness of the share exchange, regulatory approval and approval by Pancana shareholders. Pancana is 25% owned by Canada Northwest Energy and 13% by the Caisse de Depot et Placement du Quebec.
Pancana recently reported net earnings for the 9-month period ended Sept 30 of $1,731,537 or 39 cents per share after allowing for preferred dividends, compared with $2,087,055 or 52 cents per share for the same period a year earlier.
Gold production from the company’s 50% interest in the Goldstrike joint venture in Nevada was 15,925 oz during the 9-month period, down 25 oz from the same period a year earlier.