Dar es Salaam, Tanzania – Twiga Minerals Corporation (“Twiga”), a joint venture between Barrick and the Government of Tanzania, has announced the acquisition of new prospecting licences in Tanzania by Bulyanhulu Gold Mine Limited (“Bulyanhulu”), a subsidiary of Barrick.
Bulyanhulu has entered into a binding agreement with Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick”), Tembo Gold Corp. (“Tembo”), the Mineral Industry Promotion and Consulting Company Limited (“MIPCCL”), a wholly-owned subsidiary of Tembo, dated December 7, 2021 (the “Purchase Agreement”) in respect of the acquisition of certain prospecting licences. Pursuant to the Purchase Agreement, Bulyanhulu will acquire from MIPCCL a 100% interest in six prospecting licences (the “Licences”) held by MIPCCL. The Licences are located in areas adjacent to the Bulyanhulu mine and have the potential to add significant mineral reserves to Barrick’s asset base in Tanzania.
Under the terms of the Purchase Agreement, the consideration payable by Bulyanhulu is $6 million (the “Purchase Price”), plus certain other contingent payments (the “Transaction”). Such contingent payments will be calculated based on the inferred, indicated and measured gold mineral resources identified in the areas of land which are covered by the Licences (the “Licence Area”) using Barrick standards for determining mineral resources. Bulyanhulu is required to invest a minimum of $9 million in the Licence Area over the course of the four years following the closing of the Transaction. Concurrently with the execution of the Purchase Agreement, Bulyanhulu has agreed to subscribe for, on a non-brokered private placement basis, 5,518,764 of common shares of Tembo at a price of C$0.27 per common share (the “Private Placement”).
The Transaction and the Private Placement are subject to the approval of the TSX Venture Exchange, certain regulatory approvals in Tanzania, and other closing conditions customary in transactions of this nature. Closing of the Transaction and Private Placement is expected to occur in the first quarter of 2022.
Barrick president and chief executive Mark Bristow said the acquisition was a significant step forward in the company’s strategy of increasing its investment in new growth opportunities in Tanzania and a further demonstration of the value-creation potential of its partnership with the government.