Barrick <ABX.TO> announcement/Argentina Gold bid
Barrick Makes Cash Offer for Argentina Gold
TORONTO, Dec. 9 /CNW/ - Barrick Gold Corporation announced today that it intends to make a take-over bid for all of the outstanding shares of Argentina Gold Corp. for C$4.00 cash per share. With approximately 35.6 million shares of Argentina Gold outstanding, the value will be approximately C$142 million, if all shares are tendered.
The offer represents a 70% premium over the average trading price for the past 20 full trading days on the Vancouver Stock Exchange.
Barrick is hopeful that it will be able to conclude a deal with Argentina Gold. Barrick has had a joint venture agreement with Argentina Gold since 1994 on its Veladero property in Argentina, in which Barrick holds a 40% interest.
The offer will be conditional on Barrick acquiring at least 50.1% of Argentina Gold's common shares on a fully diluted basis. Barrick currently owns 9.9% of Argentina Gold's outstanding common shares. The only other conditions will be of a usual commercial nature.
A take-over bid circular containing details of the offer will be mailed to all registered holders of Argentina Gold's common shares as soon as possible after Argentina Gold has provided Barrick with a list of its shareholders.
Barrick's shares are traded under the ticker symbol ABX on the Toronto, Montreal, New York, London and Swiss Stock Exchanges and the Paris Bourse.
For further information: Vincent Borg, Vice President, Corporate Communications, Tel (416) 307-7477, Fax (416) 861-1509, Internet: barrick.com
10:39 12-09-98
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