Unigold Inc. and Barrick Gold enter into an exploration earn-in agreement on the Neita Norte concession, Dominican Republic
Published by Isabelle Keltie,
Editorial Assistant
Global Mining Review,
Unigold will grant Barrick the exclusive option to acquire a 60% undivided interest in the Neita Norte Exploration Concession by:
1. incurring not less than US$2.5 million of expenditures in respect of the concession within the first three years;
2. incurring a total of not less than US$8 million of expenditures in respect of the concession within the first six years and delivering a PEA;
3. incurring a total of not less than US$12 million of expenditures in respect of the concession within the first eight years and delivering a PFS; and
4. delivering a written notice to UGD electing to exercise the earn-in right.
Following the earn-in of a 60% interest, Barrick will have the ability to elect to sole-fund and deliver a Feasibility Study by the end of year twelve which will allow Barrick to increase its ownership in the JV to 80%. The JV will be subject to standard dilution clauses which includes the criteria that should any partner own less than 15% of the JV they would be immediately diluted to a 2.5% NSR royalty. Barrick will be the manager and operator of the project.
Unigold and Barrick will work together to finalize a long-form agreement, a shareholder's agreement and to create a joint-stock Dominican Company to hold the concession permits within the next 60 days. Unigold has received all permissions and permits to conduct exploration over the Neita Norte area. Work will commence as soon as practicable.
The agreement is subject to standard representations and warranties from both parties and is subject to TSX-V approval.
Read the article online at: https://www.globalminingreview.com/finance-business/18072023/unigold-inc-and-barrick-gold-enter-into-an-exploration-earn-in-agreement-on-the-neita-norte-concession-dominican-republic/
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