Barrick Gold Corp. has signed a deal to increase its stake in Hercules Silver Corp. to more than 10 per cent with an investment of $23.4 million.

Under the agreement, the gold miner will acquire 21,265,370 units in a non-brokered private placement at a price of $1.10 per unit.

Each unit includes one common share and 0.32 of a common share purchase warrant. Each whole warrant will entitle the holder to acquire one Hercules common share at a price of $1.32 per common share for a period of two years.

Barrick currently owns 5,291,500 common shares of Hercules or a 2.73 per cent stake. Following the private placement, Barrick will hold 26,556,870 common shares of Hercules and 6,804,918 warrants, representing a 12.33 per cent stake in Hercules on a non-diluted basis and 15.02 per cent on a partially diluted basis. 

Hercules is a junior mining company developing the Hercules silver project, northwest of Cambridge, Idaho.

Hercules shares were up 19 cents at $1.12 in late-morning trading on the TSX Venture Exchange.

This report by The Canadian Press was first published Nov. 6, 2023.