Twiga Minerals Corp., a joint venture between Barrick and the government of Tanzania, has announced the acquisition of new prospecting licences in Tanzania by Bulyanhulu Gold Mine Ltd, a subsidiary of Barrick.
Bulyanhulu has entered into a binding agreement with Barrick Gold Corp., Tembo Gold Corp., the Mineral Industry Promotion and Consulting Company Ltd (MIPCCL), a wholly-owned subsidiary of Tembo, dated 7 December 2021 (the purchase agreement) in respect of the acquisition of certain prospecting licences. Pursuant to the purchase agreement, Bulyanhulu will acquire from MIPCCL a 100% interest in six prospecting licences (the licences) held by MIPCCL. The licences are located in areas adjacent to the Bulyanhulu mine and have the potential to add significant mineral reserves to Barrick’s asset base in Tanzania.
Under the terms of the purchase agreement, the consideration payable by Bulyanhulu is US$6 million (the purchase price), plus certain other contingent payments (the transaction). Such contingent payments will be calculated based on the inferred, indicated and measured gold mineral resources identified in the areas of land which are covered by the licences (the licence area) using Barrick standards for determining mineral resources. Bulyanhulu is required to invest a minimum of US$9 million in the licence area over the course of the four years following the closing of the transaction. Concurrently with the execution of the purchase agreement, Bulyanhulu has agreed to subscribe for, on a non-brokered private placement basis, 5 518 764 of common shares of Tembo at a price of CAN$0.27 per common share (the private placement).
The transaction and the private placement are subject to the approval of the TSX Venture Exchange, certain regulatory approvals in Tanzania, and other closing conditions customary in transactions of this nature. Closing of the transaction and private placement is expected to occur in 1Q22.
Barrick President and Chief Executive, Mark Bristow, said the acquisition was a significant step forward in the company’s strategy of increasing its investment in new growth opportunities in Tanzania and a further demonstration of the value-creation potential of its partnership with the government.
Read the article online at: https://www.globalminingreview.com/exploration-development/14122021/barrick-golds-bulyanhulu-acquires-licences-in-tanzania/