Kingfisher up 23% on Barrick Mining investment news
Barrick Mining Corp. [ABX-TSX, B-NYSE] said Tuesday it has agreed to subscribe for 15.4 million units of Kingfisher Metals Corp. [KFR-TSXV, KGFMF-OTCQB-970-FSE] in a non-brokered private placement at a price of $1.35 per unit for a total consideration of $20.9 million.
Each unit consists of one common share and one half of a common share purchase warrant, where each whole warrant will entitle the holder to acquire one Kingfisher common share for $1.70 per share for two years. Closing of the private placement is expected to occur by July 27, 2026.
As a result, Barrick will hold 9.9% of the outstanding Kingfisher shares on a non-diluted basis and 14.1% of the outstanding Kingfisher shares on a partially-diluted basis. Under the agreement, Barrick will be entitled to anti-dilution and information rights in relation to Kingfisher’s Highway 37 Project in British Columbia, and Kingfisher will for two years from closing of the private placement, be restricted from selling or transferring any right or interest in Highway 37 without Barrick’s consent, subject to certain exceptions (Barrick has agreed to an 18-month lockup). Barrick and Kingfisher will also form a technical committee, and, at Kingfisher’s request, Barrick will also provide certain technical support an expertise for the 2027 and 2028 drilling seasons at the Highway 37 project.
Kingfisher shares on Tuesday rose 23.3% or $0.24 to $1.27 and trade in a 52-week range of $1.45 and 21.5 cents.
Kingfisher is focused on copper-gold exploration in the Golden Triangle region of British Columbia. Through outright purchases and option earn in agreements (Orogen Royalties Inc. [OGN-TSXV, OGNNF-OTCQX], Golden Ridge Resources Ltd. [GLDN-TSXV], and Aben Gold Corp. [ABM-TSXV, ABNAF-OTCQB), the company has consolidated one of the largest land positions in the Golden Triangle region, with the 933 square kilometre Hwy 37 Project and 202 square kilometre Forrest Kerr Project. The company also owns 100% of two district-scale orogenic gold projects in B.C. that cover 641 square kilometres.
“Post closing, the company will have $47 million in cash, providing us with the flexibility to fund aggressive ongoing exploration programs aimed at delineating copper-gold mineralization at our recent Hank porphyry discovery and throughout the extensive Golden Triangle land position,’’ said Kingfisher President and CEO Dustin Perry. “We are very pleased to welcome Barrick as a strategic shareholder of Kingfisher, following their extensive due diligence,’’ he said. “This strategic investment is an endorsement of the prospectivity of our Golden Triangle land position and our technical team’s ability to execute.’’ Perry said he believes the HWY 37 project has the potential to deliver multiple discoveries.