{"id":1089491,"date":"2018-12-14T15:15:12","date_gmt":"2018-12-14T15:15:12","guid":{"rendered":"http:\/\/www.mining.com\/?p=959181"},"modified":"2018-12-14T15:15:12","modified_gmt":"2018-12-14T15:15:12","slug":"barrick-ups-investment-in-reunion-gold-hopes-for-big-payoff-in-guiana","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1089491","title":{"rendered":"Barrick ups investment in Reunion Gold, hopes for big payoff in Guiana"},"content":{"rendered":"

Canada\u2019s Barrick Gold (TSX, NYSE:ABX), the world\u2019s top bullion\u00a0producer by volume, is acquiring 12,600,000 common shares<\/a>\u00a0of fellow junior miner Reunion Gold Corporation (TSX-V:RGD), which\u00a0has interests in four different projects in\u00a0South America\u2019s North Atlantic coast.<\/p>\n

The Toronto-based company, which already owns 15% of Reunion, said the fresh $2.27-million investment leaves its stake in the Quebec-based miner unchanged.<\/p>\n

Under the terms of the investor rights agreement the two companies inked in December last year<\/a>, and so long as Barrick holds not less than 10% of the then issued and outstanding shares of Reunion, the gold giant will have a right of first refusal in connection with the sale any interest in any of its mineral projects the junior miner has, it said.<\/p>\n

Quebec-based Reunion Gold is focused on exploring gold projects in the highly prospective and under-explored Guiana Shield gold district.<\/q><\/p>\n

Additionally, Barrick will have the right to assign one or more geologists to work full time on any or all of Reunion\u2019s mineral projects, it added.<\/p>\n

The move on Reunion, which is focused on exploring gold projects in the highly prospective and under-explored Guiana Shield gold district, is yet another example of a growing trend that dominated the mergers and acquisition scenario this year.<\/p>\n

It’s not uncommon these days to see a senior gold company making a so-called \u201cstrategic investment\u201d in a junior, with the hope that it will eventually pay off in the form of much needed added production.<\/p>\n

Seniors make a rather low-risk bet without jeopardizing huge amounts of capital, and juniors are able to raise much-needed money to fund their projects.<\/p>\n

Barrick is becoming an expert on these kinds of deals. Last year, it forked out $8.3 million on ATAC Resources Ltd. and $9.1-million on Reunion itself<\/a>. Earlier this year, it invested $1.6-million into Royal Road Minerals Limited and, in May, announced a 19.9%t investment in Vancouver-based Midas Gold<\/a> (TSX-V:MAX), worth $38 million.<\/p>\n

Executive Vice President of Exploration Rob Krcmarov recently said<\/a> the company was very interested in early-stage exploration in the Guiana Shield, adding it wanted \u201cmore exposure\u201d in Canada.<\/p>\n

Barrick will require a 15% rate of return, based on a $1,000 gold price, to approve projects with more than 5 million ounces of gold, noted head of projects and evaluation Rod Quick. For projects with more than 3 million ounces of gold it will need a 20%, he added.<\/p>\n

Barrick\u2019s $6.1 billion merger with Randgold Resources is expected to close Jan 1.<\/p>\n

The post Barrick ups investment in Reunion Gold, hopes for big payoff in Guiana<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Toronto-based company, which already owns 15% of Reunion, said the fresh $2.27-million investment leaves its stake in the Quebec-based miner unchanged.<\/p>\n

The post Barrick ups investment in Reunion Gold, hopes for big payoff in Guiana<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[421,514,515,516,404,369,440,517,428,518],"tags":[18,25,48,71,92],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1089491"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1089491"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1089491\/revisions"}],"predecessor-version":[{"id":1090245,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1089491\/revisions\/1090245"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1089491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1089491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1089491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}