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African Business Network (ABN) | Barrick subsidiary to acquire six prospecting areas in Tanzania

Barrick subsidiary to acquire six prospecting areas in Tanzania

Barrick Gold’s subsidiary Bulyanhulu Gold Mine has signed a binding agreement to acquire six prospecting licences in Tanzania, located in areas adjacent to the namesake Bulyanhulu mine in the country’s Northwest.

The agreement between Bulyanhulu and a subsidiary of Tembo Gold was announced by Twiga Minerals, a joint venture (JV) between Barrick and the Government of Tanzania.

Bulyanhulu will pay a consideration of US$6 million, along with other contingent payments up to an aggregate amount of $45 million, depending on the inferred, indicated and measured gold mineral resources identified in the licence areas.

The subsidiary firm will also invest at least $9 million in the overall licence area in four years from the closing of the transaction and has agreed to subscribe for more than 5.5 million Tembo common shares of Tembo at a price of C$0.27 per share. This will provide Bulyanhulu with a 5.5% pro forma ownership in Tembo.

“We do not underestimate the significance of Barrick’s interest and the conclusion of this purchase agreement that will enable a serious advance of our exploration strategy,” said Tembo president and CEO David Scott.

“Our expectation and hope is that a number of significant new discoveries will be made, benefitting both the companies that are making the investment, the surrounding communities and this mining-friendly country of Tanzania.”

Meanwhile, Barrick president and CEO Mark Bristow said the acquisition is a significant step forward in the company’s strategy of increasing its investment in new growth opportunities in Tanzania.

@ABNetworkOnline