This is a debt issue, not a share issue. It could become dilution, but the conversion price hasn't been set. It's usually well above the current price. The company could repurchase the notes before the conversion price is met. And in any case, we now have the cash from the debt issue, without having sold any shares.
Cash is good when you want to buy companies and properties, fix depreciating capital, invest in new capital, expand operations...
And getting it at low interest is a good move when you know it will grow.
It can even be used to hedge against declines in the high market price of your product.
KGC's debt to equity is a low 0.126. Why not borrow the money they need? The credit crunch can't be that bad. Obviously someone is fleeing, as we are currently down more than other comparable sized gold stocks.
There was no warning of this, so hopefully they have some secret purchase that will make this stock go way higher. (Just a delusional thought.)
Dilution is approximately 3.2%. There are also conditions which allow the issuer to substitute cash for all or part of the conversion & strictures on conversion price. Not much of a dilution, besides which the funds are to be used to pay down debt & fund projects. CC is a project. Let's see what Barrick does. What was your point?