Barrick Gold shares slide lower again after massive financing deal announced

TORONTO – Shares of Barrick Gold continued to fall Friday in the wake of a massive US$3-billion financing deal by the gold miner.

The Toronto-based company announced the plan late Thursday after saying it would suspend work at its Pascua-Lama gold project in South America.

Barrick has signed a deal with a syndicate of underwriters to issue as many as 188 million shares at a price of US$18.35 per share.

After deducting underwriting commissions, Barrick will receive about US$2.9 billion or as much as US$3.3 billion if over-allotment options are fully exercised.

The company says it will use the cash raised to pay down debt and bolster its balance sheet.

Barrick shares were down $1.46 or 7.2 per cent at C$18.82 on the Toronto Stock Exchange. The shares have lost more than 45 per cent so far this year.