Sharechat Logo

Barrick sells Kenya project to Shanta Gold for $14.5 million

Tuesday 11th February 2020

Text too small?

Barrick Gold (TSX: ABX) (NYSE: GOLD) has sold its project in southwestern Kenya, held by its former subsidiary Acacia Mining, to Tanzania-focused Shanta Gold in a $14. 5-million deal.

The cash and shares transaction gives Shanta its first asset outside Tanzania, which Acacia began exploring in 2010 before being bought out by Barrick.

The West Kenya licence holds about 1.18 million ounces of gold with a grade of 12.6 grams per tonne (g/t). Historical gold production in the area is estimated at roughly 259,000 ounces of gold at 12.3 g/t, mainly from Rosterman mine, included in the licence area of the West Kenya Project.

Acacia and previous owners had spent about $55 million in exploration, including 221,000 metres of drilling across the project since 2010, Shanta said.

Barrick will become Shanta’s fifth-largest shareholder, with a 6.4% stake, as a result of the agreement.

Shanta has also agreed to a 2% life of mine net smelter return royalty over a section of the exploration properties, including the Rosterman mine.

“One of Shanta’s competitive advantages is being able to operate long hole open stoping operations more efficiently than its peers, which lends itself well to the advancement of the West Kenya Project,” the company’s chief executive, Eric Zurrin, said in a statement.

The acquisition will expand Shanta’s footprint in East Africa, where it has operated for over 20 years. It will also increase the miner’s high-quality gold resource inventory to over 3 million ounces contained gold with the prospect of future growth.

(Kitco)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Investore Property Limited (Investore) today announced its financial results for the twelve months ended 31 March 2020 (FY20).
Rabobank GDT Analysis - Event 261
SkyCity Entertainment Group Limited - Update on COVID-19 Impacts and Recent Trading
ANZ announces sale of UDC Finance
Foley Wines Limited Announces Harvest Result, Earnings Outlook and Development in Martinborough
JUST MY VIEW - BRENT KING
BLIS delivers substained profitable growth
Infratil - Full year results announcement for the year ended 31 March 2020
COMVITA LIMITED Announces NZ$50 Million Equity Raising to improve balance sheet flexibility and build resilience
GMT’s delivers statutory profit of $284.4 million before tax

IRG See IRG research reports