Barrick Mining Corporation B announced that it has agreed to make an investment in Kingfisher Metals Corp. through a non-brokered private placement valued at approximately C$20.9 million (approximately $14.83 million). Under the agreement, Barrick will subscribe for 15.47 million units of Kingfisher at C$1.35 per unit (approximately 96 cents per unit), with each unit comprising one common share and one-half of a common share purchase warrant.
Upon completion of the transaction, Barrick will own about 9.9% of Kingfisher's outstanding shares on a non-diluted basis and roughly 14.1% on a partially diluted basis, assuming full exercise of the warrants. The transaction is expected to close on or before July 27, 2026, subject to customary closing conditions, including regulatory approvals.
The investment strengthens Barrick's exposure to the HWY 37 Project in British Columbia's prolific Golden Triangle, a district known for significant copper-gold discoveries. Kingfisher plans to allocate at least 80% of the proceeds toward exploration and development at the HWY 37 Project, while the remaining funds will be used for general corporate purposes and working capital.
Per the agreement, Barrick and Kingfisher will establish a technical committee to collaborate on the HWY 37 Project. Barrick may also provide technical expertise for Kingfisher's 2027 and 2028 drilling campaigns upon request. In addition, Barrick will receive anti-dilution and information rights as long as it maintains at least a 5% ownership stake. Kingfisher will also face restrictions on transferring interests in the HWY 37 Project for two years without Barrick's consent, subject to certain exceptions.
The agreement includes a two-year standstill provision, generally limiting Barrick's ownership to 15%, with the potential to increase to 19.9% under specified circumstances. Barrick will also be subject to an additional 18-month lock-up period, restricting the sale of its shares following the transaction.
Shares of B are up 68.3% in the past year compared with the industry’s 30.2% growth.
B’s Zacks Rank & Key Picks
B carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. CSW, Carpenter Technology Corporation CRS and Ternium S.A. TX. CSW, IDR and TX carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $10.58 per share, implying a 41.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 9%.
The Zacks Consensus Estimate for TX’s current-year earnings is pegged at $5.71 per share, indicating a 163.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, with the average surprise being 3.5%.
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Barrick Mining Corporation (B): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).