By Carolyn King
TORONTO-- Barrick Gold Corp. said Monday it will place about 41
million shares of its African Barrick Gold PLC subsidiary with
institutional investors as it continues to streamline through cost
cutting and asset sales.
Toronto-based Barrick said the 41 million shares represent about
10% of London-listed African Barrick, Tanzania's largest gold
miner, and about 13.5% of the parent's holdings in the company.
The Canadian gold giant said the offering will be made through
an accelerated book-build offering process to be launched
immediately. The offering has yet to be priced.
Barrick Gold last month posted a worse-than-expected
fourth-quarter loss, slashed reserves and forecast for lower output
this year.
The company, which like many large miners bought pricey assets
at the top of the commodity cycle, has been working to make itself
into a learner gold producer by shedding noncore assets and cutting
costs. It sold its jointly owned Marigold mine in Nevada last
month. That deal followed the sale of three Australian mines and
its energy business last year.
African Barrick too has been hit hard by lower gold prices and
high operating costs. It posted a net loss last year on high
impairment charges.
Write to Carolyn King at carolyn.m.king@wsj.com
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