PERTH (miningweekly.com) – The share price of ASX-listed Alicanto Minerals dropped by more than 20% on Tuesday after Canadian miner Barrick Gold Corporation withdrew from the Arakaka earn-in agreement, in Guyana.
Barrick had the option of earning a 65% interest in the project by spending $10-million on the project area, however, the Canadian miner has decided to withdraw from the asset after spending $7.1-million on a regional reconnaissance programme.
“The company has benefitted from a strong working relationship with Barrick and with over $7-million spent on exploration over the past two years, without diluting our shareholders, Alicanto is now well positioned to follow up on numerous high-grade targets more befitting of a junior mining company,” said Alicanto MD Travis Schwertfeger.
He said that Alicanto will now look to capitalise on the Barrick-funded work, taking the opportunity to focus on higher-grade targets not tested during the earn-in period.
Alicanto shares fell to a low of 6.1c a share on Tuesday, down from a high of 7.6c a share.