As filed with the Securities and Exchange Commission on August 14, 2015
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM F-3
REGISTRATION STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
BARRICK GOLD CORPORATION
(Exact Name of Registrant as Specified in its Charter)
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Ontario |
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1040 |
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Not Applicable |
(State or other jurisdiction of
incorporation) |
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(Primary Standard Industrial
Classification Code Number) |
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(IRS Employer
Identification Number) |
Brookfield Place, TD Canada Trust Tower, Suite 3700
161 Bay Street, P.O. Box 212
Toronto, Ontario Canada M5J 2S1
(416) 861-9911
(Address
and Telephone Number of Registrants Principal Executive Offices)
CT
Corporation System
111 Eighth Avenue, New York, NY 10011
(212) 590-9070
(Name,
Address, and Telephone Number of Agent For Service)
Copies to:
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Richie Haddock
Brookfield Place, TD Canada Trust Tower, Suite 3700
161 Bay Street, P.O. Box 212
Toronto, Ontario Canada
M5J 2S1 (416) 861-9911 |
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Andrew J. Pitts
Andrew R. Thompson
Cravath, Swaine & Moore LLP
825 Eighth Avenue New
York, New York 10019 (212) 474-1000 |
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Melanie A. Shishler
Jessica Bullock Davies
Ward Phillips & Vineberg LLP 155 Wellington Street West
Toronto, Ontario, Canada
M5V 3J7 (416) 863-0900 |
Approximate date of commencement of proposed sale to the public:
As soon as practicable after this registration statement becomes effective.
If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following
box. x
If any of the securities being registered on this form are to be offered on a delayed
or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. x
If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨
If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same offering. ¨
If this Form is a registration statement pursuant to General Instruction I.C. or a post-effective amendment thereto that shall become effective upon filing
with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. ¨
If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.C. filed to register additional securities or
additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box. ¨
CALCULATION OF REGISTRATION FEE
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Title of Each Class of
Securities to be Registered |
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Amount
to be
Registered(1) |
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Proposed
Maximum
Aggregate Price
Per Share(2) |
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Proposed
Maximum Aggregate
Offering Price(2) |
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Amount of Registration Fee(2)(3) |
Common Shares |
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10,000,000 |
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$7.60 |
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$76,000,000 |
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$8,831.20 |
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(1) |
Plus such additional shares as may be issued by reason of stock splits, stock distributions and similar transactions. |
(2) |
Estimated solely for the purpose of calculating the amount of the registration fee pursuant to Rule 457(c) under the Securities Act of 1933, as amended, based on the average of the high and low prices of Common
Shares of Barrick on the New York Stock Exchange on August 11, 2015. |
(3) |
The Company has an unused registration fee balance of $64,371.02, in connection with the $499,775,000 of unissued Common Shares registered under the Companys registration statement on Form F-10 (File No.
333-192018), which was initially filed on October 31, 2013. Accordingly, no registration fee is being paid in connection with this filing and pursuant to Rule 457(p) under the Securities Act of 1933, as amended, $8,831.20 of such balance is being
applied to satisfy the full amount of the registration fee due for this registration statement. |
PROSPECTUS
BARRICK GOLD CORPORATION
10,000,000 Common Shares
DIVIDEND REINVESTMENT PLAN
This prospectus
covers 10,000,000 common shares (the Common Shares), of Barrick Gold Corporation (the Company, Barrick, we or us) to be issued under our dividend reinvestment plan (the Plan).
The Plan provides holders of our Common Shares resident in Canada and the United States with a simple and convenient method of investing cash distributions declared on our Common Shares in additional Common Shares. On August 5, 2015, our Board
of Directors approved the Plan and the filing of this prospectus to, among other things, register Common Shares to be issued pursuant to the Plan. Unless stated otherwise or the context otherwise requires, all references to dollar amounts in this
prospectus are references to U.S. dollars.
Under the Plan, holders of our Common Shares resident in Canada and the United States may opt
to have cash distributions (net of any applicable withholding tax) declared on their Common Shares reinvested in Common Shares issued from the treasury of the Company, without paying any brokerage commissions or service charges.
Holders of Common Shares are entitled to receive dividends if, as and when declared by our Board of Directors out of funds legally available
for such payments. In 2013, Barrick paid a total cash dividend of $0.50 per Common Share: $0.20 in mid-March, $0.20 in mid-June, $0.05 in mid-September and $0.05 in mid-December. In 2014, Barrick paid a total cash dividend of $0.20 per Common
Share: $0.05 in mid-March, $0.05 in mid-June, $0.05 in mid-September and $0.05 in mid-December. To date in 2015, our Board of Directors has declared two cash dividends of $0.05 each, which were paid on March 16, 2015 and June 15, 2015,
respectively, and one cash dividend of $0.02, which is payable on September 15, 2015 to shareholders of record at the close of business on August 31, 2015. Our Board of Directors reviews our dividend policy quarterly based on, among
other things, the Companys current and projected liquidity profile. Following the end of the second quarter of 2015, the Board of Directors of Barrick determined to reduce Barricks future quarterly dividend from $0.05 to $0.02 per
Common Share as a prudent measure to increase financial flexibility in light of current market conditions. There can be no assurance that our Board of Directors will elect to pay future dividends on our Common Shares.
Our Common Shares are listed on the Toronto Stock Exchange (the TSX) and on the New York Stock Exchange (the NYSE)
under the trading symbol ABX. On August 11, 2015, the last reported sale price for our Common Shares was Cdn.$10.06 on the TSX and $7.68 on the NYSE.
The price that will be paid for a Treasury Purchase (as defined below) of Common Shares under the Plan on any dividend payment date (the
Average Market Price) will be the weighted average price at which board lots of Common Shares have traded on the TSX during the period of five trading days immediately preceding the relevant dividend payment date on which at least one
board lot of Common Shares has traded, as reported by the TSX less a discount, if any, of up to 5% at the Companys election. The Company has set an initial discount to the Average Market Price for purchases upon reinvestment of cash dividends
under the Plan at 3%. The Company may, subject to the terms of the Plan, alter or eliminate this discount at any time.
We cannot estimate
the anticipated proceeds from the issuance of Common Shares under the Plan, as the amount of such proceeds will depend upon the market price of our Common Shares, the extent of shareholder participation in the Plan and other factors. We will not pay
underwriting commissions in connection with the Plan but will incur costs of approximately $559,800 in connection with this offering.
Investing in
our Common Shares involves risks. See Risk Factors on page 6 of this prospectus for a discussion of certain factors relevant to an investment in our Common Shares. See also Note Regarding Forward-Looking
Statements on page 2 of this prospectus.
NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Barrick Gold Corporation
Brookfield Place, TD Canada Trust Tower, Suite 3700
161 Bay Street, P.O. Box 212
Toronto, Ontario Canada M5J 2S1
(416) 861-9911
The date
of this prospectus is August 14, 2015.
TABLE OF CONTENTS
IMPORTANT NOTICE ABOUT INFORMATION IN THIS PROSPECTUS
This prospectus is part of a registration statement that we have filed with the U.S. Securities and Exchange Commission (the
Commission or the SEC) relating to our Common Shares to be offered and sold pursuant to the Plan. This prospectus does not include all of the information in the registration statement, certain parts of which are omitted in
accordance with the rules and regulations of the Commission. The rules of the Commission allow us to incorporate by reference information herein. The information incorporated by reference is considered to be a part of this prospectus, and certain
information that we file later with the Commission will automatically update and supersede this information. See Documents Incorporated by Reference. The registration statement containing this prospectus, including exhibits to the
registration statement, together with the documents incorporated by reference in this prospectus, provides additional information about us, the Plan and the Common Shares offered. Before you invest, you should read this prospectus together with the
information incorporated by reference and the additional information described below under the heading Where You Can Find More Information. You should refer to the registration statement and the exhibits to the registration statement for
further information.
No person has been authorized to provide any information or to make any representation, other than those contained
or incorporated by reference herein, and, if given or made, such information or representation must not be relied upon as having been authorized by the Company. Neither the delivery of this prospectus nor any sale made pursuant to this prospectus
shall under any circumstances create any implication that there has been no change in the affairs of the Company since the date of this prospectus or that the information contained or incorporated by reference herein is correct as of any time
subsequent to the date of such information. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities by anyone in any jurisdiction in which such offer or solicitation is not authorized or in which the
person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation.
Barrick presents its financial statements in U.S. dollars and its financial statements are prepared in accordance with International
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Unless otherwise indicated, financial information included or incorporated by reference in this prospectus has
been prepared in accordance with IFRS. As a result, certain financial information included or incorporated by reference in this prospectus may not be comparable to financial information prepared by companies in the United States.
NOTICE REGARDING PRESENTATION OF OUR MINERAL RESERVE
AND MINERAL RESOURCE ESTIMATES
Our mineral reserves and mineral resources have been calculated in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects (NI 43-101), as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the U.S. Securities Exchange Act of 1934, as amended (the
Exchange Act)), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. In addition, while the terms measured, indicated and inferred
mineral resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC, and mineral resource information contained herein and in the documents
incorporated herein by reference is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the SEC. Investors should understand that inferred mineral resources have a great
amount of uncertainty as to their existence and as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of our mineral resources constitute or will be converted into reserves.
Accordingly, information contained in this prospectus and in the documents incorporated by reference herein, containing descriptions of
Barricks mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting requirements of United States Federal securities laws and the rules and regulations thereunder.
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NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained or incorporated by reference in this prospectus, including any information as to our strategy, projects, plans
or future financial or operating performance, constitutes forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements. The words believe, expect,
anticipate, contemplate, target, plan, intend, project, continue, budget, estimate, potential may, will,
schedule, can, could and similar expressions identify forward-looking statements. In particular, certain documents incorporated by reference contain forward-looking statements with respect to cash flow forecasts,
projected capital, operating and exploration expenditure, targeted cost reductions, mine life and production rates, potential mineralization and metal or mineral recoveries. Forward-looking statements are necessarily based upon a number of estimates
and assumptions that, while considered reasonable by the Company in light of managements experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive
uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the spot and forward
price of gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity); changes in national and local government legislation, taxation, controls, regulations and/or changes in the administration of laws,
policies and practices, expropriation or nationalization of property, and political or economic developments in Canada, the United States, Dominican Republic, Australia, Papua New Guinea, Chile, Peru, Argentina, Tanzania, Zambia, Saudi Arabia,
United Kingdom, or Barbados or other countries in which we do or may carry on business in the future; the speculative nature of mineral exploration and development; changes in mineral production performance, exploration and exploration successes;
diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development
activities, including disruptions in the maintenance or provision of required infrastructure and information technology systems; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and
liabilities based on projected future cash flows; adverse changes in our credit rating; the impact of inflation; fluctuations in the currency markets (such as Canadian and Australian dollars, Chilean and Argentinean and Dominican pesos, British
pound, Peruvian sol, Zambian kwacha, South African rand, Tanzanian schilling and Papua New Guinean kina versus the U.S. dollar); risk of loss due to acts of war, terrorism, sabotage and civil disturbances; fluctuations in the currency markets;
changes in U.S. dollar interest rates that could impact the mark-to-market value of outstanding derivative instruments and ongoing payments/receipts under interest rate swaps and variable rate debt obligations; risks arising from holding derivative
instruments (such as credit risk, market liquidity risk and mark-to-market risk); failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals;
litigation; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; business opportunities that may be presented to, or pursued by, the Company; our ability
to successfully integrate acquisitions or complete divestitures; increased costs and risks related to the potential impact of climate change; damage to the Companys reputation due to the actual or perceived occurrence of any number of events,
including negative publicity with respect to the companys handling of environmental matters or dealings with community groups, whether true or not; employee relations; availability and increased costs associated with mining inputs and labor;
and the organization of our previously held African gold operations and properties under a separate listed company. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain
insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or
on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this prospectus are qualified by these cautionary statements.
Specific reference is made to Narrative Description of the BusinessMineral Reserves and Mineral Resources and Risk Factors in the Annual Information Form, dated as of March 27, 2015, and to the Annual
Managements Discussion and Analysis, dated as of February 18, 2015 each of which is included as an exhibit to our Annual Report on Form 40-F for the fiscal year ended December 31, 2014 (the Annual Report) and to the
Interim Managements Discussion and Analysis, dated as of August 5, 2015, which is included as an exhibit to our Report on Form 6-K for the quarter ended June 30, 2015 and to the section Risk Factors in this prospectus,
for a discussion of some of the factors underlying forward-looking statements. Both the Annual Report and the Interim Managements Discussion and Analysis are incorporated by reference herein. Barrick disclaims any intention or
obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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WHERE YOU CAN FIND MORE INFORMATION
We are subject to the information requirements of the Exchange Act and applicable Canadian securities legislation, and in accordance therewith
file reports and other information with the Commission. Under the U.S./Canada Multi-jurisdictional Disclosure System, documents and other information that we file with the Commission may be prepared in accordance with the disclosure requirements of
Canada, which are different from those of the United States.
You may read and copy any document that we have filed with the Commission at
the Commissions public reference room in Washington, D.C. You may also obtain copies of those documents from the public reference room of the Commission at 100 F Street, N.E., Washington, D.C. 20549 by paying a fee. You may call the Commission
at 1-800-SEC-0330 or access its website at www.sec.gov for further information about the public reference room. You may read and download some of the documents we have filed with the Commissions Electronic Data Gathering and Retrieval system
at www.sec.gov. You may read and download any public document that we have filed with the Canadian securities regulatory authorities at www.sedar.com. You can also find information about the Company on our website at www.barrick.com. However, any
information that is included on or linked to our website is not a part of this prospectus, except as specifically incorporated by reference herein.
We have filed under the Securities Act of 1933 (the Securities Act) a registration statement on Form F-3 relating to our Plan.
This prospectus forms a part of the registration statement. This prospectus does not contain all of the information included in the registration statement, certain portions of which have been omitted as permitted by the rules and regulations of the
Commission. For further information about us and our Common Shares, you are encouraged to refer to the filings and the exhibits that are incorporated by reference into the registration statement. Statements contained in this prospectus describing
provisions of the Plan are not necessarily complete, and in each instance reference is made to the copy of the Plan which is included as an exhibit to the registration statement, and each such statement in this prospectus is qualified in all
respects by such reference.
DOCUMENTS INCORPORATED BY REFERENCE
The Commission allows us to incorporate by reference into this prospectus certain documents that we file with or furnish to the
Commission. This means that we can disclose important information to you by referring to those documents. The information incorporated by reference is considered to be an important part of this prospectus and later information that we file with the
Commission will automatically update and supersede that information. The following documents, which we have filed with or furnished to the Commission, are specifically incorporated by reference into this prospectus:
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Our Annual Report on Form 40-F for the year ended December 31, 2014, filed with the Commission on March 30, 2015; |
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The interim unaudited consolidated financial statements of Barrick for the three- and six-months ended June 30, 2015, including consolidated balance sheets as at June 30, 2015 and December 31, 2014, the
consolidated statements of income, comprehensive income and cash flow for each of the three- and six-month periods ended June 30, 2015 and June 30, 2014, and consolidated statement of changes in equity for the six-month periods ended
June 30, 2015 and June 30, 2014, and related notes (the Interim Financial Statements); |
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Managements discussion and analysis in respect of the Interim Financial Statements (the Interim Managements Discussion and Analysis); |
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Managements proxy circular, dated March 18, 2015, in connection with the annual meeting of Barricks shareholders held on April 28, 2015; and |
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The description of the Common Shares contained in the Companys Registration Statement on Form F-10, filed on October 31, 2013, including Amendment No. 1 thereto, filed on November 1, 2013, and
Amendment No. 2 thereto, filed on November 8, 2013 and any amendment or report filed for the purpose of updating such description. |
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In addition, all subsequent filings filed by us with the Commission on Form 40-F and Form 6-K
filed or furnished by us that are identified in such form as being incorporated by reference into the registration statement of which this prospectus forms a part, in each case subsequent to the date of this prospectus and prior to the termination
of this offering, are incorporated by reference into this prospectus as of the date of the filing of such documents. We will deliver to each person, including any beneficial owner, to whom this prospectus has been delivered, copies of the documents
incorporated by reference in this prospectus, but not delivered with this prospectus, upon written or oral request, without charge. Requests should be directed to us at:
Barrick Gold Corporation
Brookfield Place, TD Canada Trust Tower, Suite 3700
161 Bay Street, P.O. Box 212
Toronto, Ontario Canada M5J 2S1
Attention: Investor Relations
(416) 861-9911
Any statement
contained in a document incorporated or deemed to be incorporated by reference herein or contained in this prospectus shall be deemed to be modified or superseded for the purposes of this prospectus to the extent that a statement contained herein or
in any subsequently filed or furnished document which is or is deemed to be incorporated by reference herein modifies or supersedes that statement. Any statement so modified or superseded shall not constitute a part hereof except as so modified or
superseded. The modifying or superseding statement need not state that it has modified or superseded a prior statement or include any information set forth in the document that it modifies or supersedes. The making of a modifying or superseding
statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation, an untrue statement of a material fact or an omission to state a material fact that is required to be
stated or that is necessary to make a statement not misleading in light of the circumstances in which it was made.
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THE COMPANY
Barrick Gold Corporation is a leading international gold company which entered the gold mining industry in 1983. We have operating mines and
projects in Canada, the United States, Dominican Republic, Australia, Papua New Guinea, Peru, Chile, Argentina, Saudi Arabia, Zambia and Tanzania. Our principal products and sources of earnings are gold and copper.
Barrick is a corporation governed by the Business Corporations Act (Ontario) (the OBCA) resulting from the amalgamation,
effective July 14, 1984, under the laws of the Province of Ontario, of Camflo Mines Limited, Bob-Clare Investments Limited and the former Barrick Resources Corporation. By articles of amendment effective December 9, 1985, Barrick changed
its name to American Barrick Resources Corporation. Effective January 1, 1995, as a result of an amalgamation with a wholly-owned subsidiary, Barrick changed its name from American Barrick Resources Corporation to Barrick Gold Corporation. In
connection with its acquisition of Placer Dome Inc., Barrick amalgamated with Placer Dome Inc. pursuant to articles of amalgamation dated May 9, 2006. On January 1, 2009, Barrick amalgamated with its wholly-owned subsidiary, Arizona Star
Resource Corp. Barricks head and registered office is located at Brookfield Place, TD Canada Trust Tower, Suite 3700, 161 Bay Street, P.O. Box 212, Toronto, Ontario, Canada, M5J 2S1. Our website is www.barrick.com. The information
contained on our website is not incorporated by reference in this prospectus.
Our Common Shares are listed on the TSX and on the NYSE
under the symbol ABX.
Additional information about the Company and its subsidiaries is included in documents incorporated by
reference in this prospectus. See Documents Incorporated by Reference.
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RISK FACTORS
Before you decide to participate in the Plan and invest in our Common Shares, you should be aware of the following material risks in making
such an investment. You should consider carefully these risk factors together with all risk factors and information included or incorporated by reference herein, including the risk factors set forth in our most recent Annual Report on Form 40-F,
before you decide to participate in the Plan and purchase Common Shares. In addition, you should consult your own financial and legal advisors before making an investment.
Risks Related to Our Common Shares
The Common
Shares are Subject to Market Price Volatility
The market price of the Common Shares may be adversely affected by a variety of
factors relating to our business, including fluctuations in our operating and financial results, the results of any public announcements made by us, our failure to meet analysts expectations and changes in gold, copper and other commodity
prices. In addition, the market price and trading volume of securities of mining companies have experienced substantial volatility in the past, sometimes based on factors unrelated to the financial performance or prospects of the companies involved.
These factors include general fluctuations in the stock market, changes in global financial markets, general market conditions, changes in gold, copper and other commodity prices, macroeconomic developments in the countries where such companies
carry on business and globally and market perceptions of the attractiveness of particular industries. The trading price of the Common Shares has been volatile. During the period from January 1, 2013 to July 31, 2015, the last reported
closing sale price of the Common Shares has been as high as Cdn.$35.08 and as low as Cdn.$8.92 per share on the TSX and as high as $35.53 and as low as $6.89 per share on the NYSE. See Market Price Information. This volatility may
adversely affect the market price of the Common Shares. The market price of the Common Shares is also likely to be significantly affected by changes in precious metal prices and other mineral prices, currency exchange fluctuations and the political
and regulatory environment in the countries in which we do business and globally.
Potential Dilution
Our articles of amalgamation allow us to issue an unlimited number of Common Shares for such consideration and on such terms and conditions as
shall be established by our Board of Directors, in many cases, without the approval of our shareholders. As part of the Plan, we may issue a significant number of additional Common Shares. In addition, as at June 30, 2015, there were
4,959,610 Common Shares issuable upon the exercise of outstanding stock options of Barrick at U.S. dollar prices ranging from $27.25 to $54.83 and a Canadian dollar price of Cdn.$18.09. We may issue additional Common Shares in subsequent public
or private offerings (including through the sale of securities convertible into or exchangeable for Common Shares) and on the exercise of stock options or other securities exercisable for Common Shares. We may also issue Common Shares to finance
future acquisitions and other projects or in connection with the establishment or development of strategic relationships. Any such future issuances of Common Shares could be significant and we cannot predict the effect that future issuances and
sales of Common Shares will have on the market price of the Common Shares. Issuances of a substantial number of additional Common Shares, or the perception that such issuances could occur, may adversely affect prevailing market prices for our Common
Shares. With any additional issuance of Common Shares, investors will suffer dilution to their voting power and we may experience dilution in our earnings per share.
Dividends
Holders of Common
Shares are entitled to receive dividends if, as and when declared by our Board of Directors out of funds legally available for such payments. The OBCA provides that a corporation may not declare or pay a dividend if there are reasonable grounds for
believing that the corporation is, or would be after the payment of the dividend, unable to pay its liabilities as they become due or the realizable value of its assets would thereby be less than the aggregate of its liabilities and stated capital
of all classes of shares of its capital. Furthermore, holders of Common Shares may be subject to the prior dividend rights of holders of our preferred shares, if any, then outstanding.
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In 2013, Barrick paid a total cash dividend of $0.50 per Common Share: $0.20 in mid-March, $0.20
in mid-June, $0.05 in mid-September and $0.05 in mid-December. In 2014, Barrick paid a total cash dividend of $0.20 per Common Share: $0.05 in mid-March, $0.05 in mid-June, $0.05 in mid-September and $0.05 in mid-December. To date in 2015, our Board
of Directors has declared two cash dividends of $0.05 each, which were paid on March 16, 2015 and June 15, 2015, respectively, and one cash dividend of $0.02, which is payable on September 15, 2015 to shareholders of record at the
close of business on August 31, 2015.
Our Board of Directors reviews our dividend policy quarterly based on, among other things, the
Companys current and projected liquidity profile. Our ability to pay dividends will be subject to our future earnings, capital requirements and financial condition, as well as compliance with covenants and financial ratios relating to
existing or future indebtedness. In the second quarter of 2015, the Companys Board of Directors reduced the quarterly dividend by 60 percent to $0.02 per share as a prudent measure to increase financial flexibility in light of current market
conditions. The declaration and payment of dividends is at the discretion of our Board of Directors and there can be no assurance that our Board of Directors will elect to pay future dividends on our Common Shares.
Risks Related to the Plan
You will not know
the price of the Common Shares you are purchasing under the Plan at the time you elect to reinvest your dividends and purchase additional Common Shares.
The price of our Common Shares may fluctuate between the time you decide to reinvest in Common Shares under the Plan and the time of the
actual reinvestment. In addition, during this time period, you may become aware of additional information that might affect your investment decision, but you will be unable to terminate your participation in the Plan prior to a dividend payment date
if your notice of termination in proper form is received by the Agent fewer than five business days prior to the relevant dividend record date. If you decide to terminate your participation in the Plan and instruct the Agent to sell your shares, you
will not be able to direct the time and price at which your shares are sold. The price of our shares may decline between the time you decide to sell shares and the time of actual sale.
The Company may amend, suspend or terminate the Plan at any time.
Under the Plan, the Company may amend, suspend or terminate the Plan at any time, and such amendments, modifications, suspensions or
terminations may be materially prejudicial to participants on a going-forward basis. The Company will send written notice to participants of any material amendment, suspension or termination. Any amendment of the Plan that materially affects the
rights of participants in the Plan will be subject to the prior approval of the TSX. If the Plan is terminated, the Agent will remit to participants certificates registered in their name for whole Common Shares, together with the proceeds from the
sale of any fractions of Common Shares. If the Plan is suspended, subsequent dividends on Commons Shares will be paid in cash.
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USE OF PROCEEDS
We have no basis for estimating precisely either the number of Common Shares that may be sold under the Plan or the prices at which such
Common Shares may be sold. We will receive proceeds from the sale of Common Shares that the Agent purchases under the Plan from the treasury of the Company. We intend to use such proceeds for general corporate purposes.
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DESCRIPTION OF THE PLAN
The following is a summary of the material attributes of the Plan. The summary does not purport to be complete and is subject to, and
qualified in its entirety by, reference to the complete Plan, which is filed as an exhibit to the registration statement of which this prospectus forms a part. The 10,000,000 Common Shares offered by this prospectus, if and when issued, will be
issued pursuant to the Plan, which will be effective for dividends payable after August 31, 2015.
1. The Plan
The Plan provides a convenient means for eligible holders of Common Shares to acquire additional Common Shares by reinvesting their cash
dividends (net of any applicable withholding tax).
Holders of Common Shares are entitled to receive dividends if, as and when declared by
our Board of Directors out of funds legally available for such payments. The OBCA provides that a corporation may not declare or pay a dividend if there are reasonable grounds for believing that the corporation is, or would be after the payment of
the dividend, unable to pay its liabilities as they become due or the realizable value of its assets would thereby be less than the aggregate of its liabilities and stated capital of all classes of shares of its capital. Furthermore, holders of
Common Shares may be subject to the prior dividend rights of holders of our preferred shares, if any, then outstanding. Our Board of Directors reviews our dividend policy quarterly based on, among other things, the Companys current and
projected liquidity profile. Our ability to pay dividends will be subject to our future earnings, capital requirements and financial condition, as well as compliance with covenants and financial ratios relating to existing or future indebtedness.
Although Barrick has in recent years generally declared quarterly cash dividends on the Common Shares, in the second quarter of 2015, the Companys Board of Directors reduced the quarterly dividend by 60 percent to $0.02 per share as a prudent
measure to increase financial flexibility in light of current market conditions. The declaration and payment of dividends is at the discretion of our Board of Directors there can be no assurance that our Board of Directors will elect to pay
future dividends on our Common Shares. See Risk FactorsRisks Related to Our Common SharesDividends.
Under the
Plan, Common Shares are acquired from the treasury of the Company at 100% of their Average Market Price, less a discount, if any, of up to 5%. As Common Shares acquired under the Plan are issued directly from the treasury of the Company,
participants in the Plan (participants) do not pay brokerage commissions or service charges of any kind. All administrative costs of the Plan are borne by the Company.
Through the reinvestment by shareholders of cash dividends declared on their Common Shares, the Company will retain additional capital funds
which will be used for its general corporate purposes.
2. Eligibility
Any registered holder of Common Shares who is a resident of Canada or the United States is eligible to join in the Plan at any time. Beneficial
owners of Common Shares whose Common Shares are not registered in their own names may participate in the Plan only (1) by transferring such Common Shares into their own name or into a specific segregated registered account such as a numbered
account with a bank, trust company or broker, or (2) if such Common Shares are held through CDS Clearing and Depository Services (the Depository), by enrolling in the Plan through a participant in the Depository (a Depository
Participant).
Beneficial owners of Common Shares whose Common Shares are held in a numbered nominee account with a bank, trust
company or broker may arrange to enrol such account in the Plan. If a beneficial owner holds Common Shares in more than one such account, or in such an account or accounts as well as in such owners own name, such Common Shares may be dealt
with separately with respect to the Plan. For example, an owner can elect to participate in the Plan in respect of the Common Shares held in one account but not in respect of those held in another. Furthermore, if beneficial owners of Common Shares
hold such shares through the facilities of a Depository, they can arrange to treat each of their Common Shares separately with respect to the Plan. For example, such beneficial owners can choose to participate in the Plan in respect of some of the
Common Shares but not in respect of others.
9
The distribution of Common Shares under the Plan is registered under the Securities Act, and
Common Shares are offered for sale in both Canada and the United States. Shareholders that are resident in jurisdictions other than Canada or the United States may not participate in the Plan.
3. How the Plan Works
Common Shares acquired by the Agent pursuant to the Plan will be acquired from the treasury of the Company (a Treasury Purchase).
A participant electing to reinvest cash dividends under the Plan may only elect to reinvest 100% of the cash dividends paid on all Common
Shares owned by the participant (net of any applicable withholding tax). Partial reinvestment of cash dividends is not permitted under the Plan. The cash dividends payable on the Common Shares owned by the participant will be applied automatically
on each dividend payment date (net of any applicable withholding tax) to acquire additional Common Shares under the Plan. All cash dividends paid on Common Shares acquired under the Plan and held for the account of the participant will be
automatically reinvested in additional Common Shares on each subsequent dividend payment date.
The price that will be paid for a Treasury
Purchase of Common Shares under the plan on any dividend payment date (the Average Market Price) will be the weighted average price at which board lots of Common Shares have traded on the TSX during the period of five trading days
immediately preceding the relevant dividend payment date on which at least one board lot of Common Shares has traded, as reported by the TSX less a discount, if any, of up to 5%, at the Companys election. The Company has set an initial
discount to the Average Market Price for acquisitions upon reinvestment of cash dividends under the Plan at 3%. The Company may, subject to the terms of the Plan, alter or eliminate this discount at any time. The Average Market Price will be
converted into a U.S. dollar share price based on the noon exchange rate of one U.S. dollar in exchange for Canadian dollars, as reported by the Bank of Canada, averaged over the five trading day period used for determining the Average Market
Price.
On each dividend payment date, the Company will advise the Agent of the prices for the new Common Shares to be purchased by the
Agent on behalf of the participants and the number of new Common Shares to be issued. Each registered participants account will be credited by the Agent with that number of Common Shares purchased for that participant, including fractions
computed to four decimal places, which is equal to the cash dividends to be invested for each participant divided by the applicable Average Market Price for such Common Shares. In like fashion, the accounts of each participating beneficial owner of
Common Shares will be credited with that number of Common Shares purchased on their behalf through the facilities of the relevant Depository and relevant Depository Participant. All cash dividends paid on Common Shares held by the Agent for the
account of the participant will be used to acquire Common Shares from the treasury of the Company for the account of the participant. Any amount required under applicable tax laws to be withheld by the Company from cash dividends paid to any
participant and remitted to a taxing authority will be withheld and remitted as required, with the balance being paid to the Agent for reinvestment on behalf of the participant.
Generally, Common Shares will be registered in the name of the Agent or its nominee and held by the Agent for a participant under the Plan.
For participants holding Common Shares through a Depository, such Common Shares will be registered in the name of the relevant Depository and held for the benefit of its relevant Depository Participants under the Plan. No share certificates will be
issued for Common Shares acquired under the Plan. Common Shares may not be sold, transferred, pledged or otherwise disposed of by the participant while such Common Shares remain in the Plan. A participant who wishes to sell, transfer, pledge or
dispose of any Common Shares must withdraw them from the Plan by instructing the Agent to issue, in the name of the participant, a share certificate representing such Common Shares.
4. How to Enroll
General
Eligible registered shareholders may enroll in the Plan by completing an enrolment form (Enrolment Form), signing it
and returning it to the Agent. Copies of the Plan and Enrolment Form can be found on the Companys website at www.barrick.com and on the Agents website at www.canstockta.com and may also be obtained from the Agent at any time upon written
request addressed to the Agent. Shareholders should not send share certificates or dividend cheques to the Agent or the Company. A completed Enrolment Form must be received by the Agent no later than five business days prior to the dividend record
date for any cash dividend in order for that dividend to be reinvested under the Plan (the Enrolment Deadline).
10
Once a registered shareholder has enrolled in the Plan, participation will continue automatically
unless terminated in accordance with the terms of the Plan.
Depository Participants
Beneficial owners of Common Shares whose Common Shares are held through a Depository may enrol through the Depository Participant that
currently holds their Common Shares, provided they do so in sufficient time to allow a Depository Participant to notify the Depository no later than 3:30 p.m. (Toronto time) on that dividend record date. The Depository shall in turn notify the Agent
by 2:00 p.m. (Toronto time) a business day after the relevant dividend record date.
5. Certain Limitations
A participant may not transfer the right to participate in the Plan to another person.
The Company may also make rules and regulations to facilitate the administration of the Plan and reserves the right to regulate and interpret
the Plan text as the Company deems necessary and desirable. Any issues of interpretation arising in connection with the Plan or its application shall be conclusively determined by the Company. The Company may adopt rules and regulations concerning
the establishment of internet-based or other electronic mechanisms with respect to enrolment in the Plan, the communication of information concerning the Plan to the participants and any other aspect of this Plan.
6. Statements of Account
As soon as practicable following each dividend payment date, the Agent will send statements of account to registered participants setting out
the number of whole and fractional Common Shares acquired by reinvestment of cash dividends.
These statements are a participants
only record of the cost of each purchase of Common Shares, and accordingly, should be retained by such participant for income tax purposes. In addition, each registered participant will receive annually the appropriate tax information for reporting
dividend income.
7. Termination of Participation
General
A participant may
terminate participation in the Plan at any time by written notice to the Agent (or, where appropriate, to a Depository Participant, as set out below). The Agent will then settle the participants account by issuing a share certificate for the
number of whole Common Shares standing to the credit of the participant and by purchasing for cash any fraction of a Common Share. The amount of the payment for any such fraction will be based on the last dividend reinvestment price paid by the
Agent for such new Common Shares purchased out of cash dividends to be reinvested. Normally, requests will be processed within three weeks of the receipt of the request for termination by the Agent. If the notice is received by the Agent less than
five business days prior to a dividend record date, the termination and settlement of the participants account will take place as soon as practicable after the dividend payment date.
Participation in the Plan will also be terminated upon receipt by the Agent of written notice of the death of a participant. Proof of the
legal representatives authority to act and supporting documentation must accompany the notice of the death of a participant. Certificates for Common Shares and cash for any fractional entitlement will be issued in the name of the deceased
participant and/or in the name of the estate of the deceased participant, as appropriate, and the Agent will send such certificates and cash payment for any fraction of a Common Share to the representative of the deceased participant.
11
Upon termination of participation, a participant may request that all Common Shares held for the
participants account be sold. Such sale will be made by the Agent, through a registered dealer or stockbroker designated by the Agent. The proceeds of such sale, less brokerage commissions and transfer taxes, if any, will be paid to the
participant by the Agent. Common Shares sold pursuant to such a request may be commingled with Common Shares of other participants, in which case the proceeds to each participant will be based upon the average sale price of all Common Shares so
commingled. With respect to any fraction of a Common Share, the Agent will purchase such fraction for cash at a price determined in the same manner as in the case of whole Common Shares sold for the participant. Written requests for sale of Common
Shares received less than five business days prior to a dividend record date will be processed as soon as practicable after that dividend payment date.
All payments of cash under the Plan will be made in either Canadian or United States currency. The Agent will sell shares through the
facilities of the TSX and make payments in Canadian currency where the participant has a Canadian mailing address and sell shares through the facilities of the NYSE and make payments in United States currency where the participant has a U.S. mailing
address, in each case as such address is shown on the records of the Agent.
Non-Registered participants should contact their intermediary
or Depository Participant who holds their shares to determine the procedures for termination of their participation and selling of shares from the Plan, where applicable.
Depository Participants
Where
participants hold their Common Shares through a Depository Participant and Depository, any notice or actions must be delivered to or performed by the relevant Depository Participant. For greater certainty, if notice or termination is not received by
the relevant Depository Participant at least five business days before a dividend record date, termination will not occur until after the next dividend record date and after investment has been completed.
8. Voting of Common Shares Held under the Plan
Whole Common Shares held on the dividend record date for a vote of shareholders may be voted in the same manner as the participants
Common Shares of record may be voted, either in person or by proxy.
9. Rights Offerings, Stock Splits and Stock Dividends
In the event that the Company makes available to its shareholders rights to subscribe for additional shares or other securities,
rights certificates will be issued to participants for their whole Common Shares. No such rights will be made available in respect of fractions of Common Shares. Instead, the Agent will sell any rights relating to such fractions at a time and price
determined by the Agent and participants will be paid their proportionate interests in the proceeds of such sale.
Any Common Shares
distributed pursuant to a stock dividend or a stock split on Common Shares will be retained by the Agent and credited proportionately to the accounts of participants.
In the event of a change, reclassification or conversion of the Common Shares into other shares or securities or of any further change,
reclassification or conversion of such other shares or securities, into other shares or securities, the Plan will continue to apply to the shares or securities resulting from that event and references herein to the Common Shares and to Common Shares
will be deemed to be references to the shares or securities resulting from that event.
10. Amendment, Suspension or
Termination of the Plan
The Company reserves the right to amend, suspend or terminate the Plan at any time. The Company will send
written notice to the participants of any material amendment, suspension or termination. Any amendment of the Plan which materially affects the rights of participants in the Plan will be subject to the prior approval of the TSX. If the Plan is
terminated, the Agent will remit to participants certificates registered in their name for whole Common Shares, together with the proceeds from the sale of any fractions of Common Shares. If the Plan is suspended, subsequent dividends on Common
Shares will be paid in cash.
12
11. Notices
All notices required to be given to a participant will be mailed to participants at the address shown on the records of the Agent. All
communications including notices, requests for forms or information regarding the Plan should be directed to the Agent and the Company, as applicable, as follows:
To the Agent:
|
|
|
By mail: |
|
CST Trust Company |
|
|
P.O. Box 700 |
|
|
Station B |
|
|
Montreal, Quebec H3B 3K3 |
|
|
By telephone: |
|
Toronto |
|
|
416-682-3860 |
|
|
Toll-free throughout North America |
|
|
1 (800) 3870825 |
|
|
By fax: |
|
1 (888) 249-6189 |
|
|
By email: |
|
inquiries@canstockta.com |
|
|
Website: |
|
www.canstockta.com |
To the Companys head office:
|
|
|
By mail: |
|
Brookfield Place, TD Canada Trust Tower, Suite 3700 |
|
|
161 Bay Street, P.O. Box 212 |
|
|
Toronto, Ontario M5J 2S1 |
|
|
By telephone: |
|
(416) 861-9911 |
|
|
By fax: |
|
(416) 861-2492 |
12. Income Tax Considerations Relating to the Plan
See Canadian Federal Income Tax Considerations and U.S. Federal Income Tax Considerations for a discussion of certain
income tax considerations related to the Plan.
THE SUMMARY OF INCOME TAX CONSEQUENCES CONTAINED IN THIS PROSPECTUS IS FOR GENERAL
INFORMATION ONLY AND IS NOT INTENDED TO BE LEGAL OR TAX ADVICE TO ANY PARTICULAR PARTICIPANT. IT IS THE RESPONSIBILITY OF PARTICIPANTS IN THE PLAN TO CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE TAX CONSEQUENCES OF PARTICIPATION IN THE PLAN IN
THEIR RESPECTIVE COUNTRIES OF RESIDENCE.
13. Administration
CST Trust Company (the Agent) has been retained to act as administrator of the Plan for the Company and will maintain an account
for each participant. The Agent will keep all records necessary for the administration of the Plan.
The Company reserves the right to
interpret and regulate the Plan as it deems necessary or desirable.
13
Unless the context otherwise requires, words importing only the singular number shall include the
plural and vice versa, words importing the masculine gender shall include feminine and neuter genders and vice versa, and words importing persons shall include individuals, partnerships, associations, trusts, unincorporated organizations and
corporations.
14. Liability of the Company and the Agent
The Company and the Agent, in administering the Plan, are not liable for any act or omission to act, including, without limitation, any claims
of liability: (a) with respect to receipt or non-receipt of any payment, form or other writing purported to have been sent to the Company or the Agent; (b) actions taken as a result of inaccurate and incomplete information or instructions;
(c) in respect of any decision to amend, suspend, terminate or replace the Plan in accordance with the terms hereof; (d) in respect of the involuntary termination of a participants participation in the Plan in the circumstances
described herein; (e) with respect to the prices at which Common Shares are acquired for a participants account and the times such acquisitions are made; or (f) in respect of income taxes or other liabilities payable by any
participant or beneficial owner in connection with their participation in the Plan. Nor shall the Company or the Agent have any duties, responsibilities or liabilities except such as are expressly set forth in the Plan.
Participants should recognize that neither the Company nor the Agent can assure profit or protect against a loss on Common Shares acquired under the Plan.
Given that Common Shares acquired under the Plan are to be a Treasury Purchase, the calculation of the Average Market Price is the
responsibility of and shall be performed by the Agent.
Both the Company and the Agent shall have the right to reject any request
regarding enrolment in, withdrawal from or termination of participation in the Plan if such request is not received in proper form. Any such request will be deemed to be invalid until any irregularities have been resolved to the Companys
satisfaction and/or the Agents satisfaction prior to the applicable Enrolment Deadline. Neither the Company nor the Agent is under any obligation to notify any shareholder of an invalid request.
15. Governing Law
The Plan shall be governed and construed in accordance with the laws in force of the Province of Ontario, Canada, and the federal laws of
Canada applicable therein.
16. Effective Date
The Plan is effective for dividends payable after August 31, 2015.
14
CAPITALIZATION AND INDEBTEDNESS
The following table sets forth the cash and cash equivalents and the consolidated capitalization of Barrick as at June 30, 2015, the date
of Barricks most recently filed financial statements. Because the actual number of Common Shares to be issued pursuant to the Plan cannot be determined, as adjusted data is not presented. The table should be read in conjunction with the Annual
Report and the Interim Financial Statements and the Interim Managements Discussion and Analysis, each of which is incorporated by reference herein. See Documents Incorporated by Reference.
|
|
|
|
|
|
|
As at June 30, 2015 |
|
|
|
(in millions of United States dollars) |
|
Cash and cash equivalents |
|
$ |
2,122 |
|
Long-term debt (1) |
|
|
12,361 |
|
|
|
|
|
|
Capital stock (Common Shares authorized: unlimited; outstanding as at June 30, 2015: 1,164,699,758) |
|
|
20,865 |
|
Retained earnings |
|
|
(10,714 |
) |
Accumulated other comprehensive income |
|
|
(303 |
) |
Other |
|
|
321 |
|
Non-controlling interests |
|
|
2,603 |
|
|
|
|
|
|
Total equity |
|
|
12,772 |
|
|
|
|
|
|
Total capitalization(2) |
|
$ |
25,133 |
|
|
|
|
|
|
(1) |
Long-term debt excludes the current portion of long-term debt, provisions for environmental rehabilitation, deferred income tax liabilities and other long-term liabilities, and includes capital leases. Refer to note 18B
in the Interim Financial Statements incorporated by reference herein for more information regarding Barricks long-term debt. |
(2) |
Total capitalization is long-term debt plus total equity. |
15
MARKET PRICE INFORMATION
Our Common Shares are traded on the TSX and on the NYSE under the symbol ABX. The last reported sales price of our Common Shares
on August 11, 2015 on the TSX was Cdn.$10.06 and on the NYSE was $7.68. The following table sets forth the high and low per share closing sales prices for our Common Shares on the TSX and NYSE for the periods indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares |
|
|
|
TSX |
|
|
NYSE |
|
|
|
High CDN$ |
|
|
Low CDN$ |
|
|
High $ |
|
|
Low $ |
|
2010 |
|
|
55.25 |
|
|
|
36.45 |
|
|
|
54.83 |
|
|
|
34.00 |
|
2011 |
|
|
54.61 |
|
|
|
42.23 |
|
|
|
55.63 |
|
|
|
43.04 |
|
2012 |
|
|
49.78 |
|
|
|
32.44 |
|
|
|
49.83 |
|
|
|
32.14 |
|
2013 |
|
|
35.08 |
|
|
|
14.57 |
|
|
|
35.53 |
|
|
|
13.76 |
|
2014 |
|
|
23.52 |
|
|
|
11.83 |
|
|
|
21.23 |
|
|
|
10.17 |
|
|
|
|
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter 1 |
|
|
35.08 |
|
|
|
29.22 |
|
|
|
35.53 |
|
|
|
28.52 |
|
Quarter 2 |
|
|
29.48 |
|
|
|
15.50 |
|
|
|
29.02 |
|
|
|
14.78 |
|
Quarter 3 |
|
|
21.52 |
|
|
|
14.57 |
|
|
|
20.43 |
|
|
|
13.76 |
|
Quarter 4 |
|
|
21.53 |
|
|
|
16.38 |
|
|
|
20.50 |
|
|
|
15.40 |
|
|
|
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter 1 |
|
|
23.52 |
|
|
|
19.24 |
|
|
|
21.23 |
|
|
|
17.74 |
|
Quarter 2 |
|
|
20.63 |
|
|
|
17.04 |
|
|
|
18.93 |
|
|
|
15.69 |
|
Quarter 3 |
|
|
20.94 |
|
|
|
16.44 |
|
|
|
19.29 |
|
|
|
14.66 |
|
Quarter 4 |
|
|
16.50 |
|
|
|
11.83 |
|
|
|
14.75 |
|
|
|
10.17 |
|
|
|
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January |
|
|
16.25 |
|
|
|
12.41 |
|
|
|
13.11 |
|
|
|
10.41 |
|
February |
|
|
16.26 |
|
|
|
14.83 |
|
|
|
13.06 |
|
|
|
11.94 |
|
March |
|
|
16.00 |
|
|
|
13.16 |
|
|
|
12.76 |
|
|
|
10.33 |
|
April |
|
|
16.22 |
|
|
|
14.95 |
|
|
|
13.51 |
|
|
|
11.88 |
|
May |
|
|
15.92 |
|
|
|
14.56 |
|
|
|
13.25 |
|
|
|
11.70 |
|
June |
|
|
14.94 |
|
|
|
13.35 |
|
|
|
11.99 |
|
|
|
10.66 |
|
July |
|
|
13.73 |
|
|
|
8.92 |
|
|
|
10.85 |
|
|
|
6.89 |
|
August 1 to August 11 |
|
|
10.06 |
|
|
|
8.66 |
|
|
|
7.68 |
|
|
|
6.54 |
|
16
CANADIAN FEDERAL INCOME TAX CONSIDERATIONS
Summary of Principal Canadian Federal Income Tax Considerations
The following is a general summary of the principal Canadian federal income tax considerations generally applicable to participants in the
Plan. It is assumed for the purposes of this summary that the participant deals at arms length and is not affiliated with the Company and holds Common Shares as capital property. Generally, Common Shares are considered to be capital property
to a holder provided that the holder does not hold the Common Shares in the course of carrying on a business and has not acquired the Common Shares in one or more transactions considered to be an adventure or concern in the nature of trade. Certain
participants resident in Canada whose Common Shares might not otherwise qualify as capital property may, in certain circumstances, make an irrevocable election in accordance with subsection 39(4) of the Income Tax Act (Canada) (the Tax
Act) to have their Common Shares and every Canadian security (as defined in the Tax Act) owned by such participant in the taxation year of the election and in all subsequent taxation years deemed to be capital property.
This summary is not applicable to a participant: (i) that is a financial institution (within the meaning of the Tax Act) for
the purposes of the mark-to-market rules contained in the Tax Act; (ii) that is a specified financial institution (within the meaning of the Tax Act); (iii) an interest in which would be a tax shelter
investment (within the meaning of the Tax Act); (iv) that has elected to report its Canadian tax results (as defined in the Tax Act) in a currency other than the Canadian currency; or (v) that has entered a
synthetic disposition arrangement or derivative forward agreement (in each case as defined in the Tax Act) or a synthetic equity arrangement (as defined in Proposed Amendments released July 31, 2015) in
respect of Common Shares. Any such participant should consult its own tax advisor with respect to an investment in the Common Shares.
This summary is based on the current provisions of the Tax Act, the regulations thereunder (the Regulations), all specific
proposals to amend the Tax Act or the Regulations publicly announced by the Minister of Finance (Canada) prior to the date hereof (Proposed Amendments) and the current published administrative practices of the Canada Revenue Agency (the
CRA). This summary does not otherwise take into account or anticipate any changes in law, whether by judicial, administrative or legislative decision or action, nor does it take into account provincial, territorial or foreign income tax
legislation or considerations, which may differ from those described. This summary is not exhaustive of all possible Canadian federal income tax consequences that may affect a participant in the Plan.
This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular
participant, and no representation with respect to the Canadian federal income tax consequences to any particular participant is made. Consequently, prospective participants are advised to consult their own tax advisors with respect to their
particular circumstances.
Foreign Exchange
For the purposes of the Tax Act, all amounts expressed in a currency other than Canadian dollars relating to the acquisition, holding or
disposition of a Common Share, including dividends, adjusted cost base and proceeds of disposition, must be determined in Canadian dollars using the relevant rate of exchange quoted by the Bank of Canada at noon on the day the amount first arose or
such other rate of exchange as is acceptable to the CRA.
Residents of Canada
The following summary is generally applicable to a participant who, at all relevant times for purposes of the Tax Act, is, or is deemed to be,
resident in Canada.
Dividends
A participant will be subject to tax under the Tax Act on all dividends paid on Common Shares (including where such shares are held of record
by the Agent for the account of the participant pursuant to the Plan) which are reinvested in Common Shares under the Plan (as well as on any dividends deemed under the Tax Act to be received on Common Shares) in the same manner as the participant
would have been if such dividends had been received directly by the participant. Such dividends paid to (or deemed to be received by) a participant who is an individual
17
(including most trusts) will be subject to the gross-up and dividend tax credit rules in the Tax Act normally applicable to dividends received from taxable Canadian corporations, including the
enhanced gross-up and dividend tax credit in respect of dividends designated by the Company as eligible dividends. There may be limitations on the ability of the Company to designate dividends as eligible dividends.
A participant that is a corporation will include such dividends in computing its income, and generally will deduct the amount of such
dividends in computing its taxable income, with the result that no tax will be payable by it in respect of such dividends. In certain circumstances, subsection 55(2) of the Tax Act (as proposed to be amended by Proposed Amendments released on
July 31, 2015) will treat a taxable dividend received by a participant that is a corporation as proceeds of disposition or a capital gain. Participants that are corporations should consult their own tax advisors having regard to their own
circumstances. A participant that is a private corporation or subject corporation (as such terms are defined in the Tax Act) may be liable under Part IV of the Tax Act to pay a refundable tax of 33 1/3% of dividends received
or deemed to be received on the Common Shares to the extent that such dividends are deductible in computing the participants taxable income.
The cost for tax purposes to a participant of Common Shares purchased on the reinvestment of dividends will be the Canadian dollar equivalent
of the price paid by the Agent for the Common Shares. The cost of such Common Shares will be averaged with the adjusted cost base of all other Common Shares held by the participant at the time such Common Shares are acquired for purposes of
subsequently computing the adjusted cost base of each such Common Share owned by the participant.
Dispositions
On a disposition or deemed disposition of a Common Share (including by the Agent on behalf of the participant), the participant will realize a
capital gain (or capital loss) equal to the amount by which the participants proceeds of disposition, net of any reasonable costs of disposition, are greater than (or less than) the participants adjusted cost base of the Common Share.
Proceeds of disposition will not include an amount that is otherwise required to be included in the participants income. The payment of cash in respect of any fraction of a Common Share on termination of participation in the Plan will
constitute a disposition of such fraction of a Common Share for proceeds of disposition equal to the cash payment.
One-half of any
capital gains (or capital losses) realized by a participant will be required to be included in computing the participants income as a taxable capital gain (or allowable capital loss). An allowable capital loss will be deductible against a
taxable capital gain realized in the year or in any of the three years preceding the year or any year following the year to the extent and under the circumstances described in the Tax Act. Capital gains realized by an individual (including certain
trusts) may be subject to alternative minimum tax. A Canadian-controlled private corporation (as defined in the Tax Act) may be liable to pay an additional 6 2/3% refundable tax on certain investment income, including taxable capital
gains.
Under specific rules in the Tax Act, any capital loss realized by a corporation on the disposition of a Common Share may be
reduced by the amount of certain dividends which were received or were deemed to have been received on such share. Similar rules may apply where a corporation is a member of a partnership or a beneficiary of a trust that disposes of such shares or
where a trust or partnership of which a corporation is a beneficiary or member is a member of a partnership or beneficiary of a trust that disposes of such shares. Participants should consult their own tax advisors for specific advice regarding the
application of the relevant stop-loss provisions in the Tax Act.
Non-Residents of Canada
The following summary is generally applicable to a participant who, for purposes of the Tax Act and any applicable income tax treaty, is not
resident, nor is deemed to be resident, in Canada, and who does not use or hold and is not deemed to use or hold Common Shares in carrying on business in Canada. Special rules which are not discussed in this summary may apply to a non-resident
participant that is an insurer which carries on business in Canada and elsewhere.
18
Dividends
Dividends paid or credited or deemed to be paid or credited on Common Shares to a non-resident of Canada (including where such shares are held
of record by the Agent for the account of the non-resident pursuant to the Plan) are generally subject to Canadian withholding tax, whether or not such dividends are reinvested under the terms of the Plan. Under the Tax Act, the rate of withholding
tax is 25% of the gross amount of such dividends, which rate may be subject to reduction under the provisions of an applicable tax treaty. Under the Canada-United States Income Tax Convention (the U.S. Treaty), a participant who
is resident in the United States for the purposes of the U.S. Treaty and who is entitled to the benefits of such treaty will generally be subject to Canadian withholding tax at a rate of 15% of the amount of such dividends. In addition, under the
U.S. Treaty, dividends may be exempt from Canadian withholding tax if paid to certain participants that are qualifying religious, scientific, literary, educational or charitable tax-exempt organizations, or are qualifying trusts, companies
organizations or other arrangements operated exclusively to administer or provide pension, retirement or employee benefits which are exempt from tax in the U.S., and that have complied with specific administrative procedures. Dividends to be
reinvested in Common Shares under the Plan for non-resident participants will be reduced by the amount of any applicable Canadian withholding tax.
Dispositions
A non-resident
participant will not be subject to tax under the Tax Act on any capital gain realized on a disposition of Common Shares unless those Common Shares constitute taxable Canadian property at the time of the disposition and the participant is
not entitled to relief under an applicable income tax treaty or convention.
Generally, Common Shares will not be taxable Canadian
property to a participant at a particular time provided that either: (i) the Common Shares are listed on a designated stock exchange (such as the TSX or the NYSE) at that time and at no time during the 60-month period that ends at that time did
the participant, persons with whom the participant did not deal at arms length, or the participant together with such persons, own 25% or more of the issued shares of any class or series of the Company, or (ii) at no time during such
60-month period did the Common Shares derive more than 50% of their value from any combination of: (a) real or immovable property situated in Canada, (b) timber resource property (within the meaning of the Tax Act),
(c) Canadian resource property (within the meaning of the Tax Act) or (d) options in respect of, or interests in, or for civil law, rights in any of the foregoing, whether or not the property exists. A Common Share may also be
taxable Canadian property where the participant elected to have such Common Share treated as taxable Canadian property upon ceasing to be a resident of Canada, and in certain other circumstances.
Even if a Common Share is considered to be taxable Canadian property of a participant at the time of its disposition, a capital gain realized
on the disposition may nevertheless be exempt from tax under the Tax Act pursuant to the terms of an applicable income tax treaty or convention.
Under the U.S. Treaty, a capital gain realized on the disposition of a Common Share by a participant who is entitled to the benefits of such
treaty generally will be exempt from tax under the Tax Act except where the Common Share at the time of disposition derives its value principally from real property situated in Canada including rights to explore for or exploit mineral deposits in
Canada.
Generally, if a Common Share constitutes taxable Canadian property to a participant at the time of its disposition and any
capital gain realized by the participant on the disposition is not exempt from tax under the Tax Act by virtue of an applicable income tax treaty or convention, the participant will be required to include one-half of the amount of the capital gain
in its income for the year as a taxable capital gain. Subject to and in accordance with the provisions of the Tax Act, one-half of any capital loss realized by a participant in a taxation year from the disposition of taxable Canadian property may be
deducted as an allowable capital loss from any taxable capital gains realized by the participant in the year from the disposition of taxable Canadian property. If allowable capital losses for a year exceed taxable capital gain from the disposition
of taxable Canadian property, the excess may be carried back and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent taxation year from net taxable capital gains realized in such years from the
disposition of taxable Canadian property to the extent and in the circumstances prescribed by the Tax Act. Non-residents who dispose of taxable Canadian property are required to file a Canadian income tax return for the year of disposition,
including where any resulting capital gain is not subject to tax under the Tax Act by virtue of an applicable income tax treaty or convention.
19
U.S. FEDERAL INCOME TAX CONSIDERATIONS
The following is a summary of material United States federal income tax considerations generally applicable to certain participants in the
Plan. The summary is based upon the Internal Revenue Code of 1986, as amended (the Code), existing and proposed regulations promulgated thereunder, and judicial decisions and administrative interpretations, as in effect on the date of
the Plan, all of which are subject to change, possibly with retroactive effect. These United States federal income tax considerations apply only to a person or entity who, for United States federal income tax purposes, is: a citizen or resident of
the United States; a corporation or other entity organized under the laws of the United States or of any political subdivision thereof; an estate whose income is subject to United States federal income taxation regardless of its source; or a trust
(i) if a United States court can exercise primary jurisdiction over the trusts administration and one or more United States persons have the authority to control all substantial decisions of the trust, or (ii) that has elected to be
treated as a United States person under applicable Treasury regulations.
This summary does not address the United States federal income
tax consequences for participants that are subject to special provisions under the Code, including the following participants: (i) participants that are tax-exempt organizations, qualified retirement plans, individual retirement accounts, or
other tax-deferred accounts; (ii) participants that are financial institutions, insurance companies, real estate investment trusts, or regulated investment companies or that are broker-dealers, dealers, or traders in securities or currencies
that elect to apply a mark-to-market accounting method; (iii) participants that have a functional currency other than the United States dollar; (iv) participants that are liable for the alternative minimum tax under the Code;
(v) participants that own Common Shares as part of a straddle, hedging transaction, conversion transaction, constructive sale, or other arrangement involving more than one position; (vi) participants that hold the Common Shares other than
as a capital asset within the meaning of Section 1221 of the Code; (vii) participants that own, directly or indirectly, 5% or more, by voting power or value, of the Company; (viii) partnerships or other entities classified as
partnerships for United States federal income tax purposes; (ix) investors in pass-through entities; and (x) certain former citizens or residents of the United States. Participants that are subject to special provisions under the Code,
including participants described immediately above, should consult their own tax advisors regarding the tax consequences of reinvesting cash dividends in additional Common Shares under the Plan. This summary does not include any discussion of tax
consequences to participants in the Plan other than United States federal income tax consequences. Participants are urged to consult their own tax advisors regarding any United States estate and gift, state and local, and foreign tax consequences of
participating in the Plan.
Partners of entities that are classified as partnerships for United States federal income tax purposes should
consult their own tax advisors regarding the United States federal income tax consequences of reinvesting cash dividends in additional Common Shares under the Plan.
Subject to the passive foreign investment company (PFIC) discussion below, the gross amount of any distribution
(including any Canadian taxes withheld therefrom) paid on Common Shares generally should be included in the gross income of a participant as foreign source dividend income to the extent such distribution is paid out of current or accumulated
earnings and profits of the Company, as determined under United States federal income tax principles. To the extent that the amount of any distribution exceeds the Companys current and accumulated earnings and profits for a taxable year, the
distribution is treated as a tax-free return of capital to the extent of the participants adjusted tax basis in the Common Shares. Then, to the extent that such distribution exceeds the participants adjusted tax basis, it is treated as a
sale or exchange and taxed as a capital gain. Subject to certain limitations under the Code, participants who are subject to United States federal income tax will be entitled to a credit or deduction for Canadian income taxes withheld from any
distributions.
Dividends received by non-corporate participants may be subject to United States federal income tax at lower rates
(generally 20% plus a 3.8% unearned income Medicare contribution tax on higher income taxpayers) than other types of ordinary income if certain conditions are met. These conditions include the Company not being classified as a PFIC, the Company
being a qualified foreign corporation, the participants satisfaction of a holding period requirement, and the participant not treating the distribution as investment income for purposes of the investment interest
deduction rules.
20
In the case of participants that are domestic corporations, distributions from the Company
generally are not eligible for the dividends received deduction.
A participant will be treated for United States federal income tax
purposes as having received a distribution in an amount equal to the fair market value of the Common Shares acquired with reinvested dividends pursuant to the Plan plus the amount of any Canadian income tax withheld therefrom. The fair market value
of each Common Share so acquired will be equal to 100% of the average of the high and low sale prices of Common Shares on the dividend payment date, which amount may be higher or lower than the Average Market Price used to determine the number of
Common Shares acquired under the Plan. A participants tax basis per share for Common Shares purchased pursuant to the Plan will be equal to the fair market value of the share (as described in the preceding sentence). A participants
holding period for Common Shares purchased with dividends will begin on the day following the dividend payment date.
Participants
generally will recognize a taxable gain or loss when they sell or exchange Common Shares and when they receive cash payments for fractional shares credited to their accounts upon withdrawal from or termination of the Plan or otherwise. The amount of
this gain or loss will be equal to the difference between the amount a participant receives for his or her Common Shares or fraction thereof and the participants adjusted tax basis in these Common Shares or fraction thereof. The gain or loss
will be a capital gain or loss and will be a long-term capital gain or loss if the holding period for such Common Shares exceeds one year. Capital gain of a non-corporate United States holder is generally taxed at a maximum rate of 20% (plus a 3.8%
unearned income Medicare contribution tax on higher income taxpayers) if the property has been held for more than one year. The deductibility of capital losses is subject to limitations. The gain or loss realized by participants who are United
States persons will generally be gain or loss from sources within the United States for foreign tax credit limitation purposes. Participants may realize additional foreign currency gain or loss if Common Shares are sold for a currency other than
U.S. dollars and the currency is exchanged for U.S. dollars.
The Company will be a passive foreign investment company (PFIC)
for United States federal income tax purposes in any taxable year if 75% or more of its gross income (including the pro rata share of the gross income of any corporation in which it is considered to own, directly or indirectly, 25% or more of the
shares by value) is passive income, or on average at least 50% of the gross value of its assets is held for the production of, or produces, passive income.
PFIC status is determined on an annual basis. The Company does not expect to be a PFIC for the taxable year ending December 31, 2015, or
thereafter. However, because the Companys income and assets and the nature of its activities may vary from time to time, no assurance can be given that the Company will not be considered a PFIC for any taxable year. If a participant owns
Common Shares during a taxable year in which the Company is a PFIC, the PFIC rules generally will apply to a participant thereafter, even if in subsequent taxable years the Company no longer meets the test described above to be treated as a PFIC. No
ruling will be sought from the Internal Revenue Service (the IRS) regarding whether the Company is a PFIC.
In general, if the
Company were to be treated as a PFIC, certain adverse rules would apply to dividends received from the Company and to dispositions of Common Shares (potentially including dispositions that would not otherwise be taxable). Participants are urged to
consult their tax advisors about the PFIC rules in connection with their holding of Common Shares.
Under current United States law, if
the Company is a PFIC in any year, a participant must file an annual return on IRS Form 8621, which describes the income received (or deemed to be received pursuant to a QEF Election) from the Company, any gain realized on a disposition of Common
Shares and certain other information.
Dividends on and proceeds arising from a sale of Common Shares generally will be subject to
information reporting and backup withholding tax, currently at the rate of 28%, if (a) a participant fails to furnish its correct United States taxpayer identification number (generally on Form W-9), (b) the withholding agent is advised
the participant furnished an incorrect United States taxpayer identification number, (c) the withholding agent is notified by the IRS that the participant has previously failed to properly report items subject to backup withholding tax, or
(d) a participant fails to certify, under penalty of perjury, that the participant has furnished its correct United States
21
taxpayer identification number and that the IRS has not notified the participant that it is subject to backup withholding tax. However, participants that are corporations generally are excluded
from these information reporting and backup withholding tax rules. Amounts withheld as backup withholding may be credited against a participants United States federal income tax liability, and a participant may obtain a refund of any excess
amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information.
United States individuals who hold certain specified foreign assets with values in excess of certain dollar thresholds are required to report
such assets on IRS Form 8938 with their United States federal income tax return, subject to certain exceptions (including an exception for foreign assets held in accounts maintained by United States financial institutions). Stock issued by a foreign
corporation is treated as a specified foreign financial asset for this purpose. Penalties apply for failure to properly complete and file Form 8938. Participants are encouraged to consult with their tax advisors regarding the filing of this
form.
22
ENFORCEABILITY OF CIVIL LIABILITIES
Barrick is a corporation existing under the laws of the Province of Ontario, Canada. A majority of our assets are located outside of the
United States. In addition, some of our directors and officers and most of the experts named in this prospectus are resident outside the United States, and a majority of their assets are located outside of the United States. As a result, it may be
difficult for United States investors to effect service of process within the United States upon those directors, officers or experts who are not residents of the United States, or to realize in the United States upon judgments of courts of the
United States predicated upon civil liability of such directors, officers or experts under United States federal securities laws. We have been advised by Davies Ward Phillips & Vineberg LLP, our Canadian counsel, that there may be some
doubt whether a judgment of a U.S. court predicated solely upon civil liability provisions of United States federal securities laws would be enforceable in Ontario. We have also been advised by such counsel that there is substantial doubt whether an
action could be brought in Ontario in the first instance on the basis of liability predicated solely upon United States federal securities laws.
Indemnification
Under the OBCA,
Barrick may indemnify a director or officer of Barrick, a former director or officer of Barrick or another individual who acts or acted at Barricks request as a director or officer, or an individual acting in a similar capacity, of another
entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which
the individual is involved because of that association with Barrick or the other entity on condition that (i) the individual acted honestly and in good faith with a view to the best interests of Barrick or, as the case may be, to the best
interests of the other entity for which the individual acted as a director or officer or in a similar capacity at Barricks request, and (ii) in the case of a criminal or administrative action or proceeding that is enforced by a monetary
penalty, the individual had reasonable grounds for believing that his or her conduct was lawful. Further, Barrick may, with court approval, indemnify an individual described above in respect of an action by or on behalf of Barrick or another entity
to obtain a judgment in its favor, to which the individual is made a party by reason of the individuals association with Barrick or such other entity described above, against all costs, charges and expenses reasonably incurred by the
individual in connection with such action if the individual fulfils condition (i) above. An individual referred to above is entitled to indemnification from Barrick as a matter of right if he or she was not judged by a court or other competent
authority to have committed any fault or omitted to do anything he or she ought to have done and fulfils conditions (i) and (ii) above. Barrick has entered into a Memorandum of Agreement with each Barrick director and officer under which
Barrick has agreed to indemnify and hold harmless the individual in substantially the same circumstances as outlined in this paragraph.
In accordance with the provisions of the OBCA described above, the by-laws of Barrick provide that, subject to the relevant provisions of the
OBCA, Barrick shall indemnify a director or officer of Barrick, a former director or officer of Barrick, or another individual who acts or acted at Barricks request as a director or officer, or an individual acting in a similar capacity, of
another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding
in which the individual is involved because of that association with Barrick or such other entity if the individual acted honestly and in good faith with a view to the best interests of Barrick or, as the case may be, to the best interests of the
other entity for which the individual acted as a director or officer or in a similar capacity at Barricks request.
Barrick also
maintains insurance for the benefit of its directors and officers against liability in their respective capacities as directors and officers. The directors and officers are not required to pay any premium in respect of the insurance. The policy
contains standard industry exclusions.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to
directors, officers or persons controlling the Registrant pursuant to the foregoing provisions, the Company has been informed that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and
is therefore unenforceable.
23
PLAN OF DISTRIBUTION
Subject to the discussion below, we will distribute Common Shares purchased pursuant to the Plan as described in this prospectus. CST Trust
Company, as the Agent, will assist in the identification of shareholders, execute transactions in Common Shares pursuant to the Plan and provide other related services, but will not be acting as an underwriter with respect to our Common Shares sold
under the Plan. Participants will pay no brokerage commissions or trading or transaction fees on Common Shares purchased through the Plan with reinvested cash dividends. However, you may be responsible for other fees and expenses, including handling
fees and brokerage commissions and trading and transaction fees upon the sale of your Common Shares that are subject to the Plan, including the sale of your shares upon the termination of participation in the Plan. Our Common Shares are currently
listed for trading on the TSX and the NYSE under the symbol ABX.
Persons who acquire our Common Shares through the Plan and
resell them shortly after acquiring them, including coverage of short positions, under certain circumstances, may be participating in a distribution of securities that would require compliance with Regulation M under the Exchange Act, and may
be considered to be underwriters within the meaning of the Securities Act. We will not extend to any such person any rights or privileges other than those to which he, she or it would be entitled as a participant in the Plan, nor will we enter into
any agreement with any such person regarding the resale or distribution by any such person of Common Shares so purchased.
Certain of our
major shareholders, directors, officers or members of our management, supervisory or administrative bodies may participate in the Plan.
From time to time, financial intermediaries, including brokers and dealers, and other persons may engage in positioning transactions in order
to benefit from optional cash purchases or any discounts to the market price applicable to Common Shares purchased pursuant to the reinvestment of dividends under the Plan. Those transactions may cause fluctuations in the trading price and volume of
our Common Shares. Financial intermediaries and such other persons who engage in positioning transactions may be deemed to be underwriters. We have no arrangements or understandings, formal or informal, with any person relating to the sale of our
Common Shares to be received under the Plan. We reserve the right to modify, suspend or terminate participation in the Plan by otherwise eligible persons to eliminate practices that are inconsistent with the purposes of the Plan.
24
EXPERTS
The consolidated financial statements and the effectiveness of internal control over financial reporting incorporated by reference into the
registration statement have been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their reports incorporated by reference into the registration statement. Such financial statements and
effectiveness of internal control over financial reporting are included in reliance upon the reports of such firm, given upon their authority as experts in auditing and accounting.
LEGAL MATTERS
Certain legal matters have been passed upon for us by Davies Ward Phillips & Vineberg LLP, Canadian legal counsel to the Company, and
by Cravath, Swaine & Moore LLP, U.S. legal counsel to the Company.
INTERESTS OF QUALIFIED PERSONS
Each of Robert Krcmarov, Rick Sims, Patrick Garretson and Steven Haggarty is a person who has reviewed or supervised the preparation
of information upon which certain scientific and technical information relating to Barricks mineral properties contained or incorporated by reference in this prospectus is based. Each of such persons is an officer or employee of Barrick and/or
an officer, director or employee of one or more of its associates or affiliates. None of such persons received or will receive a direct or indirect interest in any property of Barrick or any of its associates or affiliates. As of the date hereof,
each of such persons owns beneficially, directly or indirectly, less than 1% of any outstanding class of securities of Barrick.
25
EXPENSES
The following table sets forth the estimated fees and expenses payable by the Company in connection with the registration of the Common Shares
being offered:
|
|
|
|
|
Commission registration fee |
|
$ |
9,000 |
|
Printing and mailing expenses |
|
$ |
2,500 |
|
Legal fees and expenses |
|
$ |
173,000 |
|
Accounting fees and expenses |
|
$ |
22,500 |
|
Plan Administrator fees |
|
$ |
156,500 |
|
Agent for Service fees |
|
$ |
800 |
|
TSX listing fees and expenses |
|
$ |
176,500 |
|
NYSE listing fees and expenses |
|
$ |
19,000 |
|
|
|
|
|
|
Total |
|
$ |
559,800 |
|
26
PART II
Information not required in Prospectus
ITEM 8. INDEMNIFICATION OF DIRECTORS AND OFFICERS
Under the OBCA, Barrick may indemnify a director or officer of Barrick, a former director or officer of Barrick or another individual who
acts or acted at Barricks request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment,
reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of that association with Barrick or the other entity on condition that
(i) the individual acted honestly and in good faith with a view to the best interests of Barrick or, as the case may be, to the best interests of the other entity for which the individual acted as a director or officer or in a similar capacity
at Barricks request, and (ii) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the individual had reasonable grounds for believing that his or her conduct was lawful. Further,
Barrick may, with court approval, indemnify an individual described above in respect of an action by or on behalf of Barrick or another entity to obtain a judgment in its favor, to which the individual is made a party by reason of the
individuals association with Barrick or such other entity described above, against all costs, charges and expenses reasonably incurred by the individual in connection with such action if the individual fulfils condition (i) above. An
individual referred to above is entitled to indemnification from Barrick as a matter of right if he or she was not judged by a court or other competent authority to have committed any fault or omitted to do anything he or she ought to have done and
fulfils conditions (i) and (ii) above. Barrick has entered into a Memorandum of Agreement with each Barrick director and officer under which Barrick has agreed to indemnify and hold harmless the individual in substantially the same
circumstances as outlined in this paragraph.
In accordance with the provisions of the OBCA described above, the by-laws of
Barrick provide that, subject to the relevant provisions of the OBCA, Barrick shall indemnify a director or officer of Barrick, a former director or officer of Barrick, or another individual who acts or acted at Barricks request as a director
or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil,
criminal, administrative, investigative or other proceeding in which the individual is involved because of that association with Barrick or such other entity if the individual acted honestly and in good faith with a view to the best interests of
Barrick or, as the case may be, to the best interests of the other entity for which the individual acted as a director or officer or in a similar capacity at Barricks request.
Barrick also maintains insurance for the benefit of its directors and officers against liability in their respective capacities as directors
and officers. The directors and officers are not required to pay any premium in respect of the insurance. The policy contains standard industry exclusions.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the
Registrant pursuant to the foregoing provisions, the Company has been informed that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.
ITEM 9. EXHIBITS
The following exhibits have been filed as part of this registration statement:
|
|
|
Exhibit Number |
|
Description |
|
|
4.1* |
|
Dividend Reinvestment Plan Enrolment Participation Form of Barrick Gold Corporation. |
|
|
4.2* |
|
Dividend Reinvestment Plan of Barrick Gold Corporation. |
|
|
5.1* |
|
Opinion of Davies Ward Phillips & Vineberg LLP as to the validity of the Common Shares to be registered. |
|
|
8.1* |
|
Opinion of Davies Ward Phillips & Vineberg LLP regarding Canadian tax matters (contained in Exhibit 5.1). |
|
|
8.2* |
|
Opinion of Cravath, Swaine & Moore LLP regarding U.S. tax matters. |
|
|
23.1* |
|
Consent of Davies Ward Phillips & Vineberg LLP (included in the opinion filed as Exhibit No. 5.1). |
|
|
23.2* |
|
Consent of Cravath, Swaine & Moore LLP (included in the opinion filed as Exhibit No. 8.2). |
|
|
23.3* |
|
Consent of PricewaterhouseCoopers LLP. |
|
|
23.4* |
|
Consent of Robert Krcmarov. |
|
|
23.5* |
|
Consent of Rick Sims. |
|
|
23.6* |
|
Consent of Patrick Garretson. |
|
|
23.7* |
|
Consent of Steven Haggarty. |
|
|
24.1* |
|
Powers of Attorney (included on the Signature Page to this registration statement). |
* |
Filed herewith electronically. |
ITEM 10. UNDERTAKINGS
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities
offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the Calculation of Registration Fee table in the effective
registration statement;
(iii) To include any material information with respect to the plan of distribution not previously disclosed in the
registration statement or any material change to such information in the registration statement;
provided, however, that
the undertakings set forth above in paragraphs (1)(i), (1)(ii) and (1)(iii) do not apply if the registration statement is on Form F3 and the information required to be included in a post-effective amendment by those paragraphs is
contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is
contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.
(4) To file a post-effective amendment to the registration statement to include any financial statements
required by Item 8.A. of Form 20F (17 CFR 249.220f) at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Securities Act of
1933 need not be furnished, provided that the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (4) and other information necessary to ensure that all other
information in the prospectus is at least as current as the date of those financial statements. Notwithstanding the foregoing, with respect to registration statements on Form F3, a post-effective amendment need not be filed to include
financial statements and information required by Section 10(a)(3) of the Securities Act of 1933 or Rule 3-19 of Regulation S-X if such financial statements and information are contained in periodic reports filed with or furnished to the
Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the Form F3.
(5) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser: each prospectus filed pursuant to Rule
424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration
statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated
by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
(6) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial
distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities
to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such
purchaser:
(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed
pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or
used or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of
the registrants annual reports pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plans annual report pursuant to Section 15(d) of
the Securities Exchange Act of 1934) that is incorporated by reference in this registration statement shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Commission such indemnification is against public policy as
expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will
be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing on Form F-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Toronto, Province of Ontario, Canada, on this 14th day of August,
2015.
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BARRICK GOLD CORPORATION, |
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by |
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/s/ Richie Haddock |
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Name: Richie Haddock |
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Title: Senior Vice President and General Counsel |
POWERS OF ATTORNEY
Each person whose signature appears below constitutes and appoints each of Richie Haddock, Shaun A. Usmar and Deni Nicoski as his or her true
and lawful attorney-in-fact and agent, each acting alone, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any or all amendments (including post-effective
amendments) to this registration statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, each acting
alone, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and
confirming all that said attorneys-in-fact and agents, each acting alone, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Act of 1933, as amended, this
registration statement has been signed by or on behalf of the following persons in the capacities and on the dates indicated.
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Signature |
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Title |
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Date |
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/s/ Kelvin P.M. Dushnisky |
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Co-President |
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August 14, 2015 |
Kelvin P.M. Dushnisky |
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/s/ James K. Gowans |
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Co-President |
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August 14, 2015 |
James K. Gowans |
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/s/ Shaun A. Usmar |
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Senior Executive Vice President and Chief Financial Officer |
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August 14, 2015 |
Shaun A. Usmar |
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/s/ Michael S. Lepore |
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Vice President and Controller |
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August 14, 2015 |
Michael S. Lepore |
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(Principal Accounting Officer) |
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/s/ John L. Thornton |
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Chairman and Director |
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August 14, 2015 |
John L. Thornton |
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/s/ C. William D. Birchall |
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Director |
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August 14, 2015 |
C. William D. Birchall |
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/s/ Gustavo A. Cisneros |
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Director |
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August 14, 2015 |
Gustavo A. Cisneros |
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/s/ J. Michael Evans |
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Director |
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August 14, 2015 |
J. Michael Evans |
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Director |
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Brian L. Greenspun |
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/s/ J. Brett Harvey |
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Director |
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August 14, 2015 |
J. Brett Harvey |
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/s/ Nancy H.O. Lockhart |
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Director |
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August 14, 2015 |
Nancy H.O. Lockhart |
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/s/ Dambisa Moyo |
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Director |
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August 14, 2015 |
Dambisa Moyo |
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Signature |
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Title |
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Date |
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/s/ Anthony Munk |
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Director |
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August 14, 2015 |
Anthony Munk |
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Director |
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Steven J. Shapiro |
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/s/ Ernie L. Thrasher |
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Director |
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August 14, 2015 |
Ernie L. Thrasher |
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AUTHORIZED REPRESENTATIVE
Pursuant to the requirements of the Securities Act of 1933, the undersigned has signed this registration statement on Form F-3, solely in its
capacity as the duly authorized representative of Barrick Gold Corporation in the United States on this 14th day of August, 2015.
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BARRICK GOLDSTRIKE MINES INC.
(Authorized U.S. Representative), |
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by |
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/s/ Dana Easthope |
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Name: Dana Easthope |
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Title: Secretary |
EXHIBIT INDEX
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Exhibit Number |
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Description |
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4.1* |
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Dividend Reinvestment Plan Enrolment Participation Form of Barrick Gold Corporation. |
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4.2* |
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Dividend Reinvestment Plan of Barrick Gold Corporation. |
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5.1* |
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Opinion of Davies Ward Phillips & Vineberg LLP as to the validity of the Common Shares to be registered. |
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8.1* |
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Opinion of Davies Ward Phillips & Vineberg LLP regarding Canadian tax matters (contained in Exhibit 5.1). |
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8.2* |
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Opinion of Cravath, Swaine & Moore LLP regarding U.S. tax matters. |
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23.1* |
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Consent of Davies Ward Phillips & Vineberg LLP (included in the opinion filed as Exhibit No. 5.1). |
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23.2* |
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Consent of Cravath, Swaine & Moore LLP (included in the opinion filed as Exhibit No. 8.2). |
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23.3* |
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Consent of PricewaterhouseCoopers LLP. |
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23.4* |
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Consent of Robert Krcmarov. |
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23.5* |
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Consent of Rick Sims. |
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23.6* |
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Consent of Patrick Garretson. |
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23.7* |
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Consent of Steven Haggarty. |
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24.1* |
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Powers of Attorney (included on the Signature Page to this registration statement). |
* |
Filed herewith electronically. |
Exhibit 4.1
Enrolment Form
Barrick Gold Corporations (Barrick) Dividend Reinvestment Plan
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Please refer to the
Plan Offering Circular before
enrolling
Copies are available online at:
www.canstockta.com or www.barrick.com |
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To: CST Trust Company (CST)
I wish to enrol in Barricks Shareholder Dividend Reinvestment Plan (the Plan) in order to reinvest all of the cash dividends received on my
Barrick common shares in additional Barrick common shares.
By signing this form, I request to be enrolled in the Plan, acknowledge that I have read the Plan Offering Circular containing and describing the Plan and that
my participation in the Plan will be subject to the terms and conditions of the Plan. I also acknowledge that my enrolment in the Plan will remain in effect until I otherwise notify CST, in writing, in accordance with the terms and conditions of the
Plan. |
PLEASE PRINT CLEARLY To avoid delays and ensure your enrolment, please complete all fields
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First Shareholder Name: |
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Date of Birth (DD/MM/YYYY): |
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Occupation |
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Second Shareholder Name (if applicable): |
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Date of Birth (DD/MM/YYYY): |
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Occupation: |
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Third Shareholder Name (if applicable): |
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Date of Birth (DD/MM/YYYY): |
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Occupation: |
Address: (street number and name, apartment number or suite): |
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City: |
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Province: |
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Postal code: |
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Daytime Telephone:
( ) |
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S.I.N. / T.I.N.: |
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Shareholder Account Number |
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Shareholder Email (optional): |
Your Shareholder Account Number is located on your Barrick dividend cheque.
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Shareholder Signature |
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Second Shareholder Signature (if
applicable) |
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Third Shareholder Signature (if
applicable) |
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Date (DD/MM/YY) |
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Please see reverse of form for instructions and additional information. 20120228Int
Instructions:
1. |
IMPORTANT: If shares are held by a corporation, partnership, association, agency, estate or trust, this form must be signed by a duly authorized signing officer whose title must be provided. CST may require submission
of satisfactory evidence of authority of the person executing the form. |
2. |
If shares are jointly held, all shareholders must sign this form. |
3. |
This form must be provided to CST a minimum of five business days prior to a dividend record date in order for the shareholder to participate in the Plan with respect to such dividend record date. |
4. |
Participation in this plan is limited to residents of Canada and the United States. |
5. |
If your shares are held in more than one account, a separate enrolment form must be completed for each account that you wish to participate in the Plan. |
6. |
Non-registered beneficial holders (i.e., shareholders who hold their shares through an intermediary, such as a financial institution, broker or other nominee) should consult with that Intermediary to determine the
procedure for participation in the Plan. |
7. |
For inquiries, please contact CST Trust Company at 1-800-387-0825 or inquiries@canstockta.com. |
8. |
Once completed, please return the form to: |
Toronto, ON M5W 0G1
Fax: 888-488-1416
Note:
CST is soliciting this information in compliance with the Plan and Anti-Money Laundering and Anti-Terrorist Financing legislation. All information will be held
in accordance with our Privacy Policy located at http://www.canstockta.com/privacyPolicy.do
Exhibit 4.2
BARRICK GOLD CORPORATION
DIVIDEND REINVESTMENT PLAN
Introduction
This dividend
reinvestment plan (the Plan) is being offered to the registered or beneficial holders (the Shareholders) of common shares (Common Shares) of Barrick Gold Corporation (the
Corporation) who reside in Canada or the United States as an alternative to the receipt of regular cash dividends. Under the Plan, Shareholders can automatically reinvest cash dividends (net of any applicable withholding tax) paid
on their Common Shares in additional Common Shares at a discount of up to 5% of the Average Market Price (as defined below) as determined by the Corporation from time to time in its sole discretion.
Full investment of cash dividends (net of any applicable withholding tax) is possible under the Plan because the Plan permits fractions of
Common Shares as well as whole Common Shares to be purchased and held for participants. In addition, dividends in respect of whole and fractional Common Shares held in the Plan will be automatically reinvested in further Common Shares. Common Shares
issued under the Plan will be issued directly from the treasury of the Corporation.
No Commissions or Administrative Costs
No brokerage commissions are payable in connection with the purchase of Common Shares under the Plan and all administrative costs will be borne
by the Corporation.
Use of Proceeds
Proceeds received by the Corporation upon the purchase of new Common Shares under the Plan will form part of the working capital of the
Corporation and will be used for general corporate purposes.
Administration
CST Trust Company (the Agent) has been retained to act as the Agent for the participants under the Plan pursuant to
an agreement which may be terminated by the Corporation or the Agent at any time. The Corporation will promptly pay over to the Agent, on behalf of the participants in the Plan, all cash dividends due on their Common Shares and the Agent will
purchase new Common Shares for the participants directly from the treasury of the Corporation on the dividend payment date. New Common Shares purchased under the Plan will be registered in the name of the Agent, or its nominee, as Agent for the
participants in the Plan.
The Corporation reserves the right to interpret and regulate the Plan as it deems necessary or
desirable. Unless the context otherwise requires, words importing only the singular number shall include the plural and vice versa, words importing the masculine gender shall include feminine and neuter genders and vice versa, and words importing
persons shall include individuals, partnerships, associations, trusts, unincorporated organizations and corporations.
Eligible Participants
Any registered holder of Common Shares who is a resident of Canada or the United States is eligible to join in the Plan at any time.
Beneficial owners of Common Shares whose Common Shares are not registered in their own names may participate in the Plan only (1) by transferring such Common Shares into their own name or into a specific segregated registered account such as a
numbered account with a bank, trust company or broker, or (2) if such Common Shares are held through CDS Clearing and Depository Services (the Depository), by enrolling in the Plan through a participant in the Depository (a
Depository Participant).
Beneficial owners of Common Shares whose Common Shares are held in a numbered nominee
account with a bank, trust company or broker may arrange to enrol such account in the Plan. If a beneficial owner holds Common Shares in more than one such account, or in such an account or accounts as well as in such owners own name, such
Common Shares may be dealt with separately with respect to the Plan. For example, an owner can elect to participate in the Plan in respect of the Common Shares held in one account but not in respect of those held in another. Furthermore, if
beneficial owners of Common Shares hold such shares through the facilities of a Depository, they can arrange to treat each of their Common Shares separately with respect to the Plan. For example, such beneficial owners can choose to participate in
the Plan in respect of some of the Common Shares but not in respect of others.
The distribution of Common Shares under the Plan is
registered under the United States Securities Act of 1933 (the Securities Act), and Common Shares are offered for sale in both Canada and the United States. Shareholders that are resident in jurisdictions other than Canada or the
United States can also participate in the Plan, subject to any restrictions of laws in such Shareholders jurisdiction of residence and provided such laws do not subject the Corporation or the Plan to any additional legal, regulatory, filing or
registration requirements.
Enrolment
General
Shareholders may
join the Plan by completing the Plan Enrolment Form attached to the Plan, signing it and returning it to the Agent within the applicable deadlines set out below. Additional Forms may be obtained from the Agent at any time upon written request
addressed to the Agent. The Corporation may deny the right to participate in the Plan to any person or terminate the participation of any participant in the Plan if the Corporation deems it advisable under any laws or regulations.
The Plan Enrolment Form directs the Corporation to forward to the Agent all of the participating Shareholders cash dividends received on
the Common Shares and directs the Agent to invest such dividends in the purchase of new Common Shares on behalf of the shareholder. If a beneficial owner holds Common Shares in, for example, more than one brokerage account, and wishes to participate
in the Plan in respect of Common Shares in all such accounts, they may enrol through the intermediary that currently holds their Common Shares, provided they do so in sufficient time for notice to be provided to the Agent within the applicable
deadlines set out below.
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Depository Participants
Beneficial owners of Common Shares whose Common Shares are held through a Depository may enrol through the Depository Participant that
currently holds their Common Shares, provided they do so in sufficient time to allow a Depository Participant to notify the Depository no later than 3:30 p.m. (Toronto time) on that dividend record date. The Depository shall in turn notify the Agent
by 2:00 p.m. (Toronto time) a business day after the relevant dividend record date.
Effective Date of Participation
Following receipt by the Agent of a properly completed Plan Enrolment Form, participation in the Plan becomes effective on the next record date
for any dividend declared on the Common Shares provided that the Plan Enrolment Form is received not less than five business days before such record date. Dividend record dates are normally the last day of the month preceeding the payment date of
the dividend of each quarter in which the Corporation declares a dividend.
Ongoing Enrolment
Once a Shareholder has enrolled in the Plan, participation continues automatically unless terminated in accordance with the terms of the Plan.
However, participants are advised that Common Shares acquired outside of the Plan may not be automatically enrolled in the Plan. Participants should contact the Agent, their intermediary or the Depository Participant who holds their shares, if
applicable, to confirm which of the Common Shares owned by them are enrolled in the Plan.
Price and Valuation of New Common Shares
The price at which the Agent will purchase new Common Shares from the Corporation on the dividend payment dates with cash dividends on
Common Shares will be at a discount of up to 5% of the weighted average of the trading prices for a board lot of Common Shares on The Toronto Stock Exchange (the Exchange) for a period of five trading days on which at least a
board lot was traded immediately preceding a dividend payment date (the Average Market Price). The Corporation will from time to time in its sole discretion determine the amount of any applicable discount to the Average Market
Price of Common Shares. The Average Market Price will be converted into a U.S. dollar share price based on the noon exchange rate of one U.S. dollar in exchange for Canadian dollars, as reported by the Bank of Canada, averaged over the five
trading day period used for determining the Average Market Price.
Participants Accounts and Statements
The Agent will maintain a separate account for each registered participant. Where a participating beneficial owner holds his or her Common
Shares through a Depository, the Agent will maintain an account for and in the name of the Depository and the appropriate Depository Participant will provide each such participating beneficial owner with confirmation of his or her purchase of Common
Shares through the Plan.
On each dividend payment date, the Corporation will advise the Agent of the prices for the new Common Shares to
be purchased by the Agent on behalf of the participants and the number of new Common Shares to be issued. Each registered participants account will be credited by the Agent with that number of Common Shares purchased for that participant,
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including fractions computed to four decimal places, which is equal to the cash dividends to be invested for each participant divided by the applicable purchase price for such Common Shares (as
set out above under Price and Valuation of New Common Shares). In like fashion, the accounts of each participating beneficial owner of Common Shares will be credited with that number of Common Shares purchased on their behalf through the
facilities of the relevant Depository and relevant Depository Participant.
As soon as practicable following each dividend payment date,
the Agent will send statements of account to registered participants setting out the number of whole and fractional Common Shares acquired by reinvestment of cash dividends.
These statements are a participants only record of the cost of each purchase of Common Shares, and accordingly, should be retained by
such participant for income tax purposes. In addition, each registered participant will receive annually the appropriate tax information for reporting dividend income.
Generally, Common Shares will be registered in the name of the Agent or its nominee and held by the Agent for a participant under the Plan.
For participants holding Common Shares through a Depository, such Common Shares will be registered in the name of the relevant Depository and held for the benefit of its relevant Depository Participants under the Plan. No share certificates will be
issued for Common Shares acquired under the Plan. Common Shares may not be sold, transferred, pledged or otherwise disposed of by the participant while such Common Shares remain in the Plan. A participant who wishes to sell, transfer, pledge or
dispose of any Common Shares must withdraw them from the Plan by instructing the Agent to issue, in the name of the participant, a share certificate representing such Common Shares.
A participant may, at any time upon written request to the Agent, have share certificates issued and registered in the participants name
for any number of whole Common Shares owned by such participant without terminating participation in the Plan. Otherwise, share certificates will not be issued to participants for Common Shares. No certificate for a fraction of a Common Share will
be issued.
Normally, requests will be processed within three weeks of the receipt of your request. If the request is received by the
Agent less than five business days prior to a dividend record date, the request will be processed as soon as practicable after the dividend payment date.
Non-Registered Participants should contact their intermediary or Depository Participant who holds their shares to determine the relevant
procedures for withdrawing Common Shares from the Plan.
Termination of Participation
General
A participant may
terminate participation in the Plan at any time by written notice to the Agent (or, where appropriate, to a Depository Participant, as set out below). The Agent will then settle the participants account by issuing a share certificate for the
number of whole Common Shares standing to the credit of the participant and by purchasing for cash any fraction of a Common Share. The amount of the payment for any such fraction will be based on the last
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dividend reinvestment price paid by the Agent for such new Common Shares purchased out of cash dividends to be reinvested. Normally, request will be processed within three weeks of the receipt of
your request for termination by your Agent. If the notice is received by the Agent less than five business days prior to a dividend record date, the termination and settlement of the participants account will take place as soon as practicable
after the dividend payment date.
Participation in the Plan will also be terminated upon receipt by the Agent of written notice of the
death of a participant. Proof of the legal representatives authority to act and supporting documentation must accompany the notice of the death of a participant. Certificates for Common Shares and cash for any fractional entitlement will be
issued in the name of the deceased participant and/or in the name of the estate of the deceased participant, as appropriate, and the Agent will send such certificates and cash payment for any fraction of a Common Share to the representative of the
deceased participant.
Upon termination of participation, a participant may request that all Common Shares held for the participants
account be sold. Such sale will be made by the Agent, through a registered dealer or stockbroker designated by the Agent. The proceeds of such sale, less brokerage commissions and transfer taxes, if any, will be paid to the participant by the Agent.
Common Shares sold pursuant to such a request may be commingled with Common Shares of other participants, in which case the proceeds to each participant will be based upon the average sale price of all Common Shares so commingled. With respect to
any fraction of a Common Share, the Agent will purchase such fraction for cash at a price determined in the same manner as in the case of whole Common Shares sold for the participant. Written requests for sale of Common Shares received less than
five Business Days prior to a dividend record date will be processed as soon as practicable after that dividend payment date.
All
payments of cash under the Plan will be made in either Canadian or United States currency. The Agent will sell shares through the facilities of the TSX and make payments in Canadian currency where the participant has a Canadian mailing address and
sell shares through the facilities of the NYSE and make payments in United States currency where the participant has a U.S. mailing address, in each case as such address is shown on the records of the Agent.
Non-Registered Participants should contact their intermediary or Depository Participant who holds their shares to determine the procedures for
termination of their participation and selling of shares from the plan, where applicable.
Depository Participants
Where participants hold their Common Shares through a Depository Participant and Depository, any notice or actions must be delivered to or
performed by the relevant Depository Participant. For greater certainty, if notice or termination is not received by the relevant Depository Participant at least five business days before a dividend record date, termination will not occur until
after the next dividend record date and after investment has been completed.
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Rights Offerings, Stock Splits and Stock Dividends
In the event that the Corporation makes available to its Shareholders rights to subscribe for additional shares or other securities, rights
certificates will be issued to participants for their whole Common Shares. No such rights will be made available in respect of fractions of Common Shares. Instead, the Agent will sell any rights relating to such fractions at a time and price
determined by the Agent and participants will be paid their proportionate interests in the proceeds of such sale.
Any Common Shares
distributed pursuant to a stock dividend or a stock split on Common Shares will be retained by the Agent and credited proportionately to the accounts of participants.
In the event of a change, reclassification or conversion of the Common Shares into other shares or securities or of any further change,
reclassification or conversion of such other shares or securities, into other shares or securities, the Plan will continue to apply to the shares or securities resulting from that event and references herein to the Common Shares and to Common Shares
will be deemed to be references to the shares or securities resulting from that event.
Voting of Common Shares
Whole Common Shares held on the record date for a vote of Shareholders may be voted in the same manner as the participants Common Shares
of record may be voted, either in person or by proxy.
Responsibilities of the Corporation and the Agent
Neither the Corporation nor the Agent is liable for any act, or for any good faith omission to act, including, without limitation, for
liability:
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(a) |
arising out of a failure to terminate a participants account upon such participants death prior to receipt of notice in writing of such death; or |
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(b) |
relating to the prices at which Common Shares are purchased or sold for the participants account and the times at which such purchases or sales are made. |
PARTICIPANTS SHOULD RECOGNIZE THAT NEITHER THE
CORPORATION NOR THE AGENT CAN ASSURE A GAIN OR PROTECT AGAINST LOSS
AS A RESULT OF THEIR HOLDING COMMON SHARES.
Amendment, Suspension or Termination of the Plan
The Corporation reserves the right to amend, suspend or terminate the Plan at any time. The Corporation will send written notice to the
participants of any material amendment, suspension or termination. Any amendment of the Plan which materially affects the rights of participants in the Plan will be subject to the prior approval of the Exchange. If the Plan is terminated, the Agent
will remit to participants certificates registered in their name for whole Common Shares, together with the proceeds from the sale of any fractions of Common Shares. If the Plan is suspended, subsequent dividends on Common Shares will be paid in
cash.
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Governing Law
The Plan shall be governed and construed in accordance with the laws in force of the Province of Ontario, Canada and the federal laws of Canada
applicable therein.
Effective Date
The Plan is effective for dividends payable after August 31, 2015.
Notices
All notices required to be given
to participants under the Plan will be mailed to participants at the address shown on the records of the Agent.
All communications to the
Agent and requests for forms or information regarding the Plan, should be directed to the Agent by phone, mail, fax or e-mail to:
BY
PHONE: Toll free in North America: 1-800-387-0825
Toronto: 416-682-3860
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BY FAX: |
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1-888-249-6189 |
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BY EMAIL: |
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inquiries@canstockta.com |
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WEBSITE: |
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www.canstockta.com |
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BY MAIL: |
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CST Trust Company |
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P.O. Box 700 |
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Station B |
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Montreal, Quebec H3B 3K3 |
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CANADIAN FEDERAL INCOME TAX CONSIDERATIONS
Summary of Principal Canadian Federal Income Tax Considerations
The following is a general summary of the principal Canadian federal income tax considerations generally applicable to participants in
the Plan. It is assumed for the purposes of this summary that the participant deals at arms length and is not affiliated with the Corporation and holds Common Shares as capital property. Generally, Common Shares are considered to be capital
property to a holder provided that the holder does not hold the Common Shares in the course of carrying on a business and has not acquired the Common Shares in one or more transactions considered to be an adventure or concern in the nature of trade.
Certain participants resident in Canada whose Common Shares might not otherwise qualify as capital property may, in certain circumstances, make an irrevocable election in accordance with subsection 39(4) of the Income Tax Act (Canada) (the
Tax Act) to have their Common Shares and every Canadian security (as defined in the Tax Act) owned by such participant in the taxation year of the election and in all subsequent taxation years deemed to
be capital property.
This summary is not applicable to a participant: (i) that is a financial institution (within
the meaning of the Tax Act) for the purposes of the mark-to-market rules contained in the Tax Act; (ii) that is a specified financial institution (within the meaning of the Tax Act); (iii) an interest in which would
be a tax shelter investment (within the meaning of the Tax Act); (iv) that has elected to report its Canadian tax results (as defined in the Tax Act) in a currency other than the Canadian currency; or (v) that has
entered a synthetic disposition arrangement or derivative forward agreement (in each case as defined in the Tax Act) or a synthetic equity arrangement (as defined in Proposed Amendments released July 31,2015)
in respect of Common Shares. Any such participant should consult its own tax advisor with respect to an investment in the Common Shares.
This summary is based on the current provisions of the Tax Act, the regulations thereunder (the Regulations), all
specific proposals to amend the Tax Act or the Regulations publicly announced by the Minister of Finance (Canada) prior to the date hereof (Proposed Amendments) and the current published administrative practices of the Canada
Revenue Agency (the CRA). This summary does not otherwise take into account or anticipate any changes in law, whether by judicial, administrative or legislative decision or action, nor does it take into account provincial,
territorial or foreign income tax legislation or considerations, which may differ from those described. This summary is not exhaustive of all possible Canadian federal income tax consequences that may affect a participant in the Plan.
This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular
participant, and no representation with respect to the Canadian federal income tax consequences to any particular participant is made. Consequently, prospective participants are advised to consult their own tax advisors with respect to their
particular circumstances.
- 8 -
Foreign Exchange
For the purposes of the Tax Act, all amounts expressed in a currency other than Canadian dollars relating to the acquisition, holding or
disposition of a Common Share, including dividends, adjusted cost base and proceeds of disposition, must be determined in Canadian dollars using the relevant rate of exchange quoted by the Bank of Canada at noon on the day the amount first arose or
such other rate of exchange as is acceptable to the CRA.
Residents of Canada
The following summary is generally applicable to a participant who, at all relevant times for purposes of the Tax Act, is, or is deemed to be,
resident in Canada.
Dividends
A participant will be subject to tax under the Tax Act on all dividends paid on Common Shares (including where such shares are held of record
by the Agent for the account of the participant pursuant to the Plan) which are reinvested in Common Shares under the Plan (as well as on any dividends deemed under the Tax Act to be received on Common Shares) in the same manner as the participant
would have been if such dividends had been received directly by the participant. Such dividends paid to (or deemed to be received by) a participant who is an individual (including most trusts) will be subject to the gross-up and dividend tax credit
rules in the Tax Act normally applicable to dividends received from taxable Canadian corporations, including the enhanced gross-up and dividend tax credit in respect of dividends designated by the Corporation as eligible dividends. There
may be limitations on the ability of the Corporation to designate dividends as eligible dividends.
A participant that is a
corporation will include such dividends in computing its income and generally will deduct the amount of such dividends in computing its taxable income, with the result that no tax will be payable by it in respect of such dividends. In certain
circumstances, subsection 55(2) of the Tax Act (as proposed to be amended by Proposed Amendments released on July 31, 2015) will treat a taxable dividend received by a participant that is a corporation as proceeds of disposition or a capital
gain. Participants that are corporations should consult their own tax advisors having regard to their own circumstances. A participant that is a private corporation or subject corporation (as such terms are defined in the Tax
Act) may be liable under Part IV of the Tax Act to pay a refundable tax of 33 1/3% of dividends received or deemed to be received on the Common Shares to the extent that such dividends are deductible in computing the participants taxable
income.
The cost for tax purposes to a participant of Common Shares purchased on the reinvestment of dividends will be the Canadian
dollar equivalent of the price paid by the Agent for the Common Shares. The cost of such Common Shares will be averaged with the adjusted cost base of all other Common Shares held by the participant at the time such Common Shares are acquired for
purposes of subsequently computing the adjusted cost base of each such Common Share owned by the participant.
Dispositions
On a disposition or deemed disposition of a Common Share (including by the Agent on behalf of the participant), the participant will realize a
capital gain (or capital loss) equal to the amount by which the participants proceeds of disposition, net of any reasonable costs of disposition, are greater than (or less than) the participants adjusted cost base of the
- 9 -
Common Share. Proceeds of disposition will not include an amount that is otherwise required to be included in the participants income. The payment of cash in respect of any fraction of a
Common Share on termination of participation in the Plan will constitute a disposition of such fraction of a Common Share for proceeds of disposition equal to the cash payment.
One-half of any capital gains (or capital losses) realized by a participant will be required to be included in computing the
participants income as a taxable capital gain (or allowable capital loss). An allowable capital loss will be deductible against a taxable capital gain realized in the year or in any of the three years preceding the year or any year following
the year to the extent and under the circumstances described in the Tax Act. Capital gains realized by an individual (including certain trusts) may be subject to alternative minimum tax. A Canadian-controlled private corporation (as
defined in the Tax Act) may be liable to pay an additional 6 2/3% refundable tax on certain investment income, including taxable capital gains.
Under specific rules in the Tax Act, any capital loss realized by a corporation on the disposition of a Common Share may be reduced by the
amount of certain dividends which were received or were deemed to have been received on such share. Similar rules may apply where a corporation is a member of a partnership or a beneficiary of a trust that disposes of such shares or where a trust or
partnership of which a corporation is a beneficiary or member is a member of a partnership or beneficiary of a trust that disposes of such shares. Participants should consult their own tax advisors for specific advice regarding the application of
the relevant stop-loss provisions in the Tax Act.
Non-Residents of Canada
The following summary is generally applicable to a participant who, for purposes of the Tax Act and any applicable income tax treaty, is not
resident, nor is deemed to be resident, in Canada, and who does not use or hold and is not deemed to use or hold Common Shares in carrying on business in Canada. Special rules which are not discussed in this summary may apply to a non-resident
participant that is an insurer which carries on business in Canada and elsewhere.
Dividends
Dividends paid or credited or deemed to be paid or credited on Common Shares to a non-resident of Canada (including where such shares
are held of record by the Agent for the account of the non-resident pursuant to the Plan) are generally subject to Canadian withholding tax, whether or not such dividends are reinvested under the terms of the Plan. Under the Tax Act, the rate of
withholding tax is 25% of the gross amount of such dividends, which rate may be subject to reduction under the provisions of an applicable tax treaty. Under the Canada-United States Income Tax Convention (the U.S.
Treaty), a participant who is resident in the United States for the purposes of the U.S. Treaty and who is entitled to the benefits of such treaty will generally be subject to Canadian withholding tax at a rate of 15% of the amount of such
dividends. In addition, under the U.S. Treaty, dividends may be exempt from Canadian withholding tax if paid to certain participants that are qualifying religious, scientific, literary, educational or charitable tax-exempt organizations, or are
qualifying trusts, companies organizations or other arrangements operated exclusively to administer or provide pension, retirement or employee benefits which are exempt from tax in the U.S., and that have complied with specific administrative
procedures. Dividends to be reinvested in Common Shares under the Plan for non-resident participants will be reduced by the amount of any applicable Canadian withholding tax.
- 10 -
Dispositions
A non-resident participant will not be subject to tax under the Tax Act on any capital gain realized on a disposition of Common Shares unless
those Common Shares constitute taxable Canadian property at the time of the disposition and the participant is not entitled to relief under an applicable income tax treaty or convention.
Generally, Common Shares will not be taxable Canadian property to a participant at a particular time provided that either: (i) the Common
Shares are listed on a designated stock exchange (such as the Exchange or the New York Stock Exchange) at that time and at no time during the 60-month period that ends at that time did the participant, persons with whom the participant did not deal
at arms length, or the participant together with such persons, own 25% or more of the issued shares of any class or series of the Corporation, or (ii) at no time during such 60-month period did the Common Shares derive more than 50% of
their value from any combination of: (a) real or immovable property situated in Canada, (b) timber resource property (within the meaning of the Tax Act), (c) Canadian resource property (within the meaning of
the Tax Act) or (d) options in respect of, or interests in, or for civil law, rights in any of the foregoing, whether or not the property exists. A Common Share may also be taxable Canadian property where the participant elected to have such
Common Share treated as taxable Canadian property upon ceasing to be a resident of Canada, and in certain other circumstances.
Even if a
Common Share is considered to be taxable Canadian property of a participant at the time of its disposition, a capital gain realized on the disposition may nevertheless be exempt from tax under the Tax Act pursuant to the terms of an applicable
income tax treaty or convention.
Under the U.S. Treaty, a capital gain realized on the disposition of a Common Share by a participant who
is entitled to the benefits of such treaty generally will be exempt from tax under the Tax Act except where the Common Share at the time of disposition derives its value principally from real property situated in Canada including rights to explore
for or exploit mineral deposits in Canada.
Generally, if a Common Share constitutes taxable Canadian property to a participant at the
time of its disposition and any capital gain realized by the participant on the disposition is not exempt from tax under the Tax Act by virtue of an applicable income tax treaty or convention, the participant will be required to include one-half of
the amount of the capital gain in its income for the year as a taxable capital gain. Subject to and in accordance with the provisions of the Tax Act, one-half of any capital loss realized by a participant in a taxation year from the disposition of
taxable Canadian property may be deducted as an allowable capital loss from any taxable capital gains realized by the participant in the year from the disposition of taxable Canadian property. If allowable capital losses for a year exceed taxable
capital gain from the disposition of taxable Canadian property, the excess may be carried back and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent taxation year from net taxable capital gains
realized in such years from the disposition of taxable
- 11 -
Canadian property to the extent and in the circumstances prescribed by the Tax Act. Non-residents who dispose of taxable Canadian property are required to file a Canadian income tax return for
the year of disposition, including where any resulting capital gain is not subject to tax under the Tax Act by virtue of an applicable income tax treaty or convention.
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U.S. FEDERAL INCOME TAX CONSIDERATIONS
The following is a summary of material United States federal income tax considerations generally applicable to certain participants in the
Plan. The summary is based upon the Internal Revenue Code of 1986, as amended (the Code), existing and proposed regulations promulgated thereunder, and judicial decisions and administrative interpretations, as in effect on the date of
the Plan, all of which are subject to change, possibly with retroactive effect. These United States federal income tax considerations apply only to a person or entity who, for United States federal income tax purposes, is: a citizen or resident of
the United States; a corporation or other entity organized under the laws of the United States or of any political subdivision thereof; an estate whose income is subject to United States federal income taxation regardless of its source; or a trust
(i) if a United States court can exercise primary jurisdiction over the trusts administration and one or more United States persons have the authority to control all substantial decisions of the trust, or (ii) that has elected to be
treated as a United States person under applicable Treasury regulations.
This summary does not address the United States federal income
tax consequences for participants that are subject to special provisions under the Code, including the following participants: (i) participants that are tax-exempt organizations, qualified retirement plans, individual retirement accounts, or
other tax-deferred accounts; (ii) participants that are financial institutions, insurance companies, real estate investment trusts, or regulated investment companies or that are broker-dealers, dealers, or traders in securities or currencies
that elect to apply a mark-to-market accounting method; (iii) participants that have a functional currency other than the United States dollar; (iv) participants that are liable for the alternative minimum tax under the Code;
(v) participants that own Common Shares as part of a straddle, hedging transaction, conversion transaction, constructive sale, or other arrangement involving more than one position; (vi) participants that hold the Common Shares other than
as a capital asset within the meaning of Section 1221 of the Code; (vii) participants that own, directly or indirectly, 5% or more, by voting power or value, of the Corporation; (viii) partnerships or other entities classified as
partnerships for United States federal income tax purposes; (ix) investors in pass-through entities; and (x) certain former citizens or residents of the United States. Participants that are subject to special provisions under the Code,
including participants described immediately above, should consult their own tax advisors regarding the tax consequences of reinvesting cash dividends in additional Common Shares under the Plan. This summary does not include any discussion of tax
consequences to participants in the Plan other than United States federal income tax consequences. Participants are urged to consult their own tax advisors regarding any United States estate and gift, state and local, and foreign tax consequences of
participating in the Plan.
Partners of entities that are classified as partnerships for United States federal income tax purposes should
consult their own tax advisors regarding the United States federal income tax consequences of reinvesting cash dividends in additional Common Shares under the Plan.
Subject to the passive foreign investment company (PFIC) discussion below, the gross amount of any
distribution (including any Canadian taxes withheld therefrom) paid on Common Shares generally should be included in the gross income of a participant as foreign
- 13 -
source dividend income to the extent such distribution is paid out of current or accumulated earnings and profits of the Corporation, as determined under United States federal income tax
principles. To the extent that the amount of any distribution exceeds the Corporations current and accumulated earnings and profits for a taxable year, the distribution is treated as a tax-free return of capital to the extent of the
participants adjusted tax basis in the Common Shares. Then, to the extent that such distribution exceeds the participants adjusted tax basis, it is treated as a sale or exchange and taxed as a capital gain. Subject to certain limitations
under the Code, participants who are subject to United States federal income tax will be entitled to a credit or deduction for Canadian income taxes withheld from any distributions.
Dividends received by non-corporate participants may be subject to United States federal income tax at lower rates (generally 20% plus a 3.8%
unearned income Medicare contribution tax on higher income taxpayers) than other types of ordinary income if certain conditions are met. These conditions include the Corporation not being classified as a PFIC, the Corporation being a qualified
foreign corporation, the participants satisfaction of a holding period requirement, and the participant not treating the distribution as investment income for purposes of the investment interest deduction rules.
In the case of participants that are domestic corporations, distributions from the Corporation generally are not eligible for the dividends
received deduction.
A participant will be treated for United States federal income tax purposes as having received a distribution in an
amount equal to the fair market value of the Common Shares acquired with reinvested dividends pursuant to the Plan plus the amount of any Canadian income tax withheld therefrom. The fair market value of each Common Share so acquired will be equal to
100% of the average of the high and low sale prices of Common Shares on the dividend payment date, which amount may be higher or lower than the Average Market Price used to determine the number of Common Shares acquired under the Plan. A
participants tax basis per share for Common Shares purchased pursuant to the Plan will be equal to the fair market value of the share (as described in the preceding sentence). A participants holding period for Common Shares purchased
with dividends will begin on the day following the dividend payment date.
Participants generally will recognize a taxable gain or loss
when they sell or exchange Common Shares and when they receive cash payments for fractional shares credited to their accounts upon withdrawal from or termination of the Plan or otherwise. The amount of this gain or loss will be equal to the
difference between the amount a participant receives for his or her Common Shares or fraction thereof and the participants adjusted tax basis in these Common Shares or fraction thereof. The gain or loss will be a capital gain or loss and will
be a long-term capital gain or loss if the holding period for such Common Shares exceeds one year. Capital gain of a non-corporate United States holder is generally taxed at a maximum rate of 20% (plus a 3.8% unearned income Medicare contribution
tax on higher income taxpayers) if the property has been held for more than one year. The deductibility of capital losses is subject to limitations. The gain or loss realized by participants who are United States persons will generally be gain or
loss from sources within the United States for foreign tax credit limitation purposes. Participants may realize additional foreign currency gain or loss if Common Shares are sold for a currency other than U.S. dollars and the currency is exchanged
for U.S. dollars.
- 14 -
The Corporation will be a passive foreign investment company (PFIC) for United States
federal income tax purposes in any taxable year if 75% or more of its gross income (including the pro rata share of the gross income of any corporation in which it is considered to own, directly or indirectly, 25% or more of the shares by value) is
passive income, or on average at least 50% of the gross value of its assets is held for the production of, or produces, passive income.
PFIC status is determined on an annual basis. The Corporation does not expect to be a PFIC for the taxable year ending
December 31, 2015, or thereafter. However, because the Corporations income and assets and the nature of its activities may vary from time to time, no assurance can be given that the Corporation will not be considered a PFIC for any
taxable year. If a participant owns Common Shares during a taxable year in which the Corporation is a PFIC, the PFIC rules generally will apply to a participant thereafter, even if in subsequent taxable years the Corporation no longer meets the test
described above to be treated as a PFIC. No ruling will be sought from the Internal Revenue Service (the IRS) regarding whether the Corporation is a PFIC.
In general, if the Corporation were to be treated as a PFIC, certain adverse rules would apply to dividends received from the Corporation and
to dispositions of Common Shares (potentially including dispositions that would not otherwise be taxable). Participants are urged to consult their tax advisors about the PFIC rules in connection with their holding of Common Shares.
Under current United States law, if the Corporation is a PFIC in any year, a participant must file an annual return on IRS Form 8621, which
describes the income received (or deemed to be received pursuant to a QEF Election) from the Corporation, any gain realized on a disposition of Common Shares and certain other information.
Dividends on and proceeds arising from a sale of Common Shares generally will be subject to information reporting and backup withholding tax,
currently at the rate of 28%, if (a) a participant fails to furnish its correct United States taxpayer identification number (generally on Form W-9), (b) the withholding agent is advised the participant furnished an incorrect United States
taxpayer identification number, (c) the withholding agent is notified by the IRS that the participant has previously failed to properly report items subject to backup withholding tax, or (d) a participant fails to certify, under penalty of
perjury, that the participant has furnished its correct United States taxpayer identification number and that the IRS has not notified the participant that it is subject to backup withholding tax. However, participants that are corporations
generally are excluded from these information reporting and backup withholding tax rules. Amounts withheld as backup withholding may be credited against a participants United States federal income tax liability, and a participant may obtain a
refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information.
United States individuals who hold certain specified foreign assets with values in excess of certain dollar thresholds are required to report
such assets on IRS Form 8938 with their United States federal income tax return, subject to certain exceptions (including an exception for foreign assets held in accounts maintained by United States financial institutions). Stock issued by a foreign
corporation is treated as a specified foreign financial asset for this purpose. Penalties apply for failure to properly complete and file Form 8938. Participants are encouraged to consult with their tax advisors regarding the filing of this
form.
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Exhibit 5.1
August 14, 2015
Davies Ward Phillips
& Vineberg LLP
File No. 249492
Barrick Gold Corporation
Brookfield Place
161 Bay Street, Suite 3700
Toronto, ON M5J 2S1
Dear Sirs/Mesdames:
We are Ontario and Canadian counsel to
Barrick Gold Corporation (the Company) in connection with a registration statement on Form F-3 with exhibits thereto dated August 14, 2015 (the Registration Statement), which includes the prospectus included therein (the
Prospectus) and the Special Dividend Reinvestment Plan (the Plan) attached as an exhibit thereto, each dated August 14, 2015, filed by the Company with the U.S. Securities and Exchange Commission (the SEC)
pursuant to the U.S. Securities Act of 1933, as amended (the Act), and the rules and regulations thereunder, relating to the registration of common shares in the capital of the Company (the Shares) which may be issued from
treasury by the Company pursuant to the Plan.
In connection with the opinions expressed herein, we have considered such questions of law and have
examined such public and corporate records, certificates and other documents and conducted such other examinations as we have considered necessary. We have also examined the Registration Statement and the Plan, which has been filed with the SEC as
an exhibit to the Registration Statement. In such examinations, we have assumed the legal capacity of all individuals, the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity to authentic
original documents of all documents submitted to us as certified, conformed, photostatic or facsimile copies.
As to certain matters of fact relevant to
the opinions expressed below, we have relied exclusively upon a certificate of an officer of the Company dated the date hereof. Our opinions herein pertain solely to matters governed by the laws of the Province of Ontario and the federal laws of
Canada applicable therein, in effect on the date hereof. Further the opinion expressed in paragraph (b) below is limited to the federal income tax laws of Canada in effect on the date hereof, all specific proposals to amend such laws publicly
announced by the Minster of Finance (Canada) prior to the date hereof, and our understanding of the current published administrative policies and assessing practices of the Canada Revenue Agency. The statutory provisions, regulations, and
interpretations upon which our opinion in paragraph (b) below is based are subject to change, and such changes could apply retroactively. Any such change could affect the continuing validity of the opinion set forth below. We assume no
responsibility to advise you of any subsequent changes in existing law or facts, nor do we assume any responsibility to update this opinion with respect to any matters expressly set forth herein, and no opinions are to be implied or may be inferred
beyond the matters expressly so stated.
Based upon and relying on the foregoing and subject to the qualification, assumptions and limitations stated
herein, we are of the opinion that:
(a) |
when the Shares are issued in accordance with the terms of Plan, the Shares will be validly issued as fully paid and non-assessable common shares in the capital of the Company; and |
(b) |
subject to the qualifications, assumptions, limitations and understandings set out therein, the summary set out in the Prospectus under the heading Canadian Federal Income Tax Considerations fairly describes
the principal Canadian federal income tax considerations as at the date hereof generally applicable under the Income Tax Act (Canada) and the regulations thereunder to a participant in the Plan to whom such statements are addressed.
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We hereby consent to the filing of this opinion as Exhibit 5.1 to the Registration Statement and the use of our name under the captions
Legal Matters Enforceability of Civil Liabilities in the Prospectus included in the Registration Statement. In giving the foregoing consent, we do not admit that we are in the category of persons whose consent is required
under Section 7 of the Act or the rules and regulations of the SEC promulgated thereunder.
The opinions expressed herein are provided solely for
your benefit in connection with the filing of the Registration Statement with the SEC and may not be relied on for any other purpose or relied upon by, or furnished to, any other person, firm or corporation, or quoted from or referred to in any
document other than the Registration Statement, or used for any other purpose, without our prior written consent.
Yours very truly,
/s/ Davies Ward Phillips & Vineberg LLP
Exhibit 8.2
WRITERS DIRECT DIAL NUMBER
WRITERS EMAIL ADDRESS
August 14, 2015
Barrick
Gold Corporation
Ladies and Gentlemen:
We have acted as U.S. tax counsel to Barrick Gold Corporation, a corporation existing under the laws of Ontario (the Company), in
connection with the Companys dividend reinvestment plan (the Plan) established for use in connection with dividends payable after August 31, 2015. In connection with the Plan, the Company filed a Registration Statement on
Form F-3 on August 14, 2015 (the Registration Statement), with the Securities and Exchange Commission (the Commission). The Registration Statement relates to the registration of 10,000,000 of the Companys
common shares (the Common Shares), which represents the estimated maximum number of Common Shares that may be issued by the Company in connection with the Plan.
In rendering our opinion, we have considered the applicable provisions of the Internal Revenue Code of 1986, as amended (the
Code), regulations promulgated thereunder by the U.S. Department of Treasury (the Regulations), pertinent judicial authorities, rulings of the Internal Revenue Service and such other authorities as we have considered
relevant, in each case as in effect on the date hereof. It should be noted that the Code, Regulations, judicial decisions, administrative interpretations and other authorities are subject to change at any time, possibly with retroactive effect. A
material change in any of the materials or authorities upon which our opinion is based could affect the conclusions set forth herein. There can be no assurance, moreover, that any opinion expressed herein will be accepted by the Internal Revenue
Service, or if challenged, by a court.
Based upon the foregoing, although the discussion in the Registration Statement under the heading
U.S. Federal Income Tax Considerations does not purport to discuss all possible U.S. federal income tax consequences of participation under the Plan, we hereby confirm that the statements of law (including the qualifications thereto)
under such heading represent our opinion of the material U.S. federal income tax consequences of participation under the Plan, subject to certain assumptions expressly described in the Registration Statement under such heading.
We express no other opinion, except as set forth above. We disclaim any undertaking to advise you
of any subsequent changes in the facts stated or assumed herein or subsequent changes in applicable law. Any changes in the facts set forth or assumed herein may affect the conclusions stated herein.
We hereby consent to the filing of this opinion with the Commission as Exhibit 8.2 to the Registration Statement. We also consent to the
reference to our firm under the caption Legal Matters in the prospectus forming part of the Registration Statement. In giving this consent, we do not thereby admit that we are included in the category of persons whose consent is required
under Section 7 of the Act or the rules and regulations of the Commission.
We are admitted to practice in the State of
New York, and we express no opinion as to matters governed by any laws other than the Federal laws of the United States of America. In particular, we do not purport to pass on any matter governed by the laws of Canada.
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Very truly yours, |
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/s/ Cravath, Swaine & Moore LLP |
Barrick Gold Corporation
TD Canada Trust Tower, Suite 3700
161 Bay Street, P.O. Box 212
Toronto, Ontario
Canada M5J 2S1
O
Exhibit 23.3
CONSENT OF INDEPENDENT AUDITOR
We hereby
consent to the incorporation by reference in this registration statement on form F-3 of Barrick Gold Corporation (the company) of our report dated February 18, 2015 relating to the consolidated financial statements and
effectiveness of internal control over financial reporting of the company, which appears in the companys Annual Report on Form 40-F for the year ended December 31, 2014. We also consent to the reference to us under
the heading Experts in such registration statement.
/s/ PricewaterhouseCoopers LLP
Chartered Professional Accountants, Licensed Public Accountants
Toronto, Ontario
August 14, 2015
Exhibit 23.4
CONSENT OF EXPERT
In
connection with the Registration Statement on Form F-3 and any amendment thereto (the Form F-3) of Barrick Gold Corporation, I, Robert Krcmarov, hereby consent to the use of my name in connection with the references to the
scientific and technical information relating to Barrick Gold Corporations mineral properties contained in or incorporated by reference on the Form F-3.
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Date: August 14, 2015 |
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By: |
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/s/ Robert Krcmarov |
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Name: Robert Krcmarov |
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Title: Senior Vice President,
Global Exploration |
Exhibit 23.5
CONSENT OF EXPERT
In
connection with the Registration Statement on Form F-3 and any amendment thereto (the Form F-3) of Barrick Gold Corporation, I, Rick Sims , hereby consent to the use of my name in connection with the references to the scientific and
technical information relating to Barrick Gold Corporations mineral properties contained in or incorporated by reference on the Form F-3.
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Date: August 14, 2015 |
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By: |
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/s/ Rick Sims |
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Name: Rick Sims |
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Title: Senior Director, Resources and Reserves |
Exhibit 23.6
CONSENT OF EXPERT
In
connection with the Registration Statement on Form F-3 and any amendment thereto (the Form F-3) of Barrick Gold Corporation, I, Patrick Garretson, hereby consent to the use of my name in connection with the references to the
scientific and technical information relating to Barrick Gold Corporations mineral properties contained in or incorporated by reference on the Form F-3.
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Date: August 14, 2015 |
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By: |
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/s/ Patrick Garretson |
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Name: Patrick Garretson |
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Title: Director, Life of Mine Planning |
Exhibit 23.7
CONSENT OF EXPERT
In
connection with the Registration Statement on Form F-3 and any amendment thereto (the Form F-3) of Barrick Gold Corporation, I, Steven Haggarty, hereby consent to the use of my name in connection with the references to the
scientific and technical information relating to Barrick Gold Corporations mineral properties contained in or incorporated by reference on the Form F-3.
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Date: August 14, 2015 |
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By: |
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/s/ Steven Haggarty |
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Name: Steven Haggarty |
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Title: Senior Director, Metallurgy |
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