PERTH (Miningweekly.com) – Gold miner Troy Resources has entered into an acquisition agreement with gold company Barric Gold Corporation on various exploration properties at the Karouni gold project in Guyana.
Under the terms of the deal, Barrick was granted the right to acquire a 51% interest in the project concessions, which do not include the Karouni mine site or the immediate mining area, by funding only certain agreed labor expenses and by carrying out a pre-feasibility study. on buildings.
Once the joint venture is acquired, the two companies would form a joint venture (JV), with Barrick having to fund the joint venture on its own until a feasibility study is completed to acquire an additional 19% stake in the joint venture.
If a development decision is made, Troy has the option of requiring Barrick to arrange or provide Troy’s share of the funding for the project, for an additional 10% stake in the project.
In addition, Barrick also agreed to subscribe for more than 39 million Troy shares, priced at 3.08 cents each, for a $ 1.2 million capital investment in the Australian company, giving Barrick a stake. 4.9% in Troy.
“Since Troy’s acquisition of the Karouni project in 2014, we have always maintained that our position on the ground was very promising for the discovery of significant gold mineralization,” said Troy General Manager Ken Nilsson.
“Unfortunately, due to financial circumstances, we were never able to explore to the extent that we would have liked and that was rightfully warranted.
“From our current ground position, none is considered more promising than Potaro. Having identified this opportunity about two years ago, we were very happy to have recently been able to bring together an important group in this area. Located under a significant blanket of sand, exploration of Potaro and other targets will be significantly enhanced with the participation of Barrick and its exploration team.
Barrick CEO Mark Bristow said on Thursday that the gold company had capitalized on its knowledge of Birimian greenstone gold deposits in West Africa, to identify the Karouni Basin as an area of priority interest.
“The geological similarities between the West African Birimian and the Guyanese Shield are well established, however, exploration of the Guyanese Shield is quite immature by comparison. We look forward to combining Barrick’s technical and financial resources with the team and knowledge established in the country of Troy, to advance exploration on the Project’s claims with the goal of delivering new world-class gold discoveries.