Precipitate closes Barrick financing, stock up

View of the Pueblo Grande project. Image from Precipitate Gold.

Precipitate Gold (TSXV: PRG) has closed its previously announced non-brokered private placement of 12.7 million common shares of the company at a price of C$0.11 per share for gross proceeds of approximately C$1.39 million, as subscribed for by Barrick Gold.

Earlier this week, the two companies entered into an earn-in agreement, granting Barrick the right to acquire a 70% stake in Precipitate's Pueblo Grande project in the Dominican Republic. The Pueblo Grande property is located next to the Pueblo Viejo mine jointly owned by Barrick (60%) and Newmont (40%).

As part of the agreement, Barrick also agreed to subscribe for C$1.39 million of Precipitate's common shares in a private placement.

Precipitate president and CEO Jeffrey Wilson said the financing proceeds will help the company with its exploration efforts at multiple existing advanced-staged targets at the Juan de Herrera project, as well as emerging target areas within the Ponton project, 30 km east of the Pueblo Viejo mine.

Shares of Precipitate Gold rose by 16.6% to a six-week high of C$0.14 early on Friday. The company's market capitalization is C$12.1 million.