Done Deal!!!! Great Job Mr. Young!!!
Barrick, Teranga complete Massawa, Sabodala combination
2020-03-04 17:04 ET - News Release
See News Release (C-ABX) Barrick Gold Corp
Mr. Mark Bristow of Barrick reports
BARRICK COMPLETES MASSAWA TRANSACTION
In line with its strategy of focusing on tier-one assets, Barrick Gold Corp. has completed the recently announced transaction of combining its Massawa gold project in Senegal with Teranga Gold Corp.'s Sabodala gold mine. Barrick and its Senegalese partner held a 90-per-cent interest in the Massawa project. All amounts in this news release are expressed in United States dollars.
As part of the transaction, Barrick and its partner will receive an upfront payment valued at $380-million at the time of announcement, comprising 20,718,273 Teranga common shares (with a value at the time of announcement of approximately $80-million based on the Teranga share price at that time of $3.85 per share), a cash payment of approximately $300-million and a contingent payment of up to $50-million, which is based upon the average gold price for the three-year period immediately following closing. The contingent payment, which is payable three years following closing, is: $25-million if the three-year average gold price is greater than $1,450 and less than $1,500 per ounce, $35-million if the three-year average gold price is greater than $1,500 and less than $1,600 per ounce, and $50-million if the three-year average gold price exceeds $1,600 per ounce.
Barrick president and chief executive Mark Bristow said Massawa was one of the largest unexploited gold deposits in West Africa and its legacy company Randgold Resources had developed this over a period of years to the point where its value could now be optimally realized for the benefit of all its stakeholders, which includes the Senegal government.
"Teranga is best placed to achieve this as it already owns the nearby Sabodala mine and Sabodala's combination with Massawa is expected to deliver significant synergies. Barrick will participate in the upside of the combined asset through the 11-per-cent interest it is acquiring in Teranga through this transaction," Mr. Bristow said.
We seek Safe Harbor.
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