Barrick partners with junior to explore Guiana Shield
Canadian explorer Reunion Gold has formed a strategic alliance with gold major Barrick Gold to jointly explore and develop prospects in South America’s Guiana Shield.
Concurrently, TSX- and NYSE-listed Barrick will increase its interest in TSX-V-listed Reunion to 19.9%, from 15%, for 35-million shares, valued at $5.3-million through participation in a private placing.
The Guiana Shield includes Guyana, Suriname, French Guiana and the north and north-east regions of Brazil.
Reunion will initially contribute to the alliance the Waiamu, Aremu, Arawini and Oko projects, all located in Guyana. Its interests in the Dorlin, Haute Mana and Boulanger projects, in French Guiana, are not included in the alliance. However, Barrick retains a right of first refusal on these projects, and can in the future define any project, based on certain criteria, as a "designated project".
Barrick will initially fund an amount equal to $4.2-million on the initial "included projects", as credit for historical exploration expenditures spent by Reunion, with subsequent funding to be on a 50:50 basis between the companies.
As long as the alliance is in effect, if Reunion acquires an interest in any mineral property in the subject area (Guiana Shield) it will present the new project to Barrick, which will then elect to include the new project in the alliance. If included, Barrick will fund the initial costs and expenditures for the project, in an amount equal to Reunion’s incurred costs on the project up to a maximum of $250 000.
Barrick can at any time designate an included project as a designated project, following which the major will sole fund the designated project until the completion of a feasibility study.
Upon completion of a feasibility study, Barrick’s interest in the project will increase to 70% and Reunion will retain a 30% interest. If Barrick does not deliver a feasibility study on the designated project, the project returns to the Alliance as an included project.
Reunion will manage all exploration projects within the alliance until such projects are defined as designated projects, while Barrick will manage all designated projects.
“This alliance addresses the concerns faced by explorers worldwide. The combination of skills, knowledge, working together create the conditions necessary for exploration and development success. The Guiana Shield is one of the best remaining places in the world for large scale gold discoveries.
“The alliance creates the opportunity to deploy skills and expertise effectively and efficiently. The Guiana Shield has been overlooked for a variety of historical reasons, including remoteness, lack of infrastructure, knowledge of how to conduct effective tropical exploration and an understanding of local conditions and laws,” said Reunion president and CEO Réjean Gourde.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation