Barrick Gold (TSX:ABX) (NYSE:GOLD), the world’s second largest producer of the precious metal, has agreed to sell its 90% stake in the Massawa project in Senegal to fellow miner Teranga Gold (TSX:TGZ), in a stock and cash deal value at up to $430 million.
Massawa, one of the highest-grade undeveloped open-pit gold reserves in West Africa, is located only 20 km away from Teranga’s flagship Sabodala mine. For that reason, Teranga had been named by experts as the logical buyer of Massawa, ever since Barrick announced it was up for sale as part of its plan to offload $1.5 billion of asset through 2020.
Barrick will hold more than 19.1 million
Teranga common shares, representing 11.45% of the company’s issued and
outstanding shares, and it will have the right to nominate one Teranga director
for as long as it retains at least a 10% equity interest in the company.
The gold giant acquired the 4-gram-per-tonne
gold project as part of its purchase of Randgold Resources.
More to come…