Shanta completes acquisition of Barrick’s Kenya assets
East Africa-focused Shanta Gold has completed the acquisition of gold major Barrick’s Kenya subsidiary and is now turning its focus to integrating the assets into its portfolio.
The Aim-listed miner in February announced the acquisition of Acacia Exploration (Kenya) (AEKL) from Barrick in a cash-and-share transaction.
AEKL’s primary asset is a 100% interest in licences, which include an existing inferred resource of 1.18-million ounces, grading 12.6 g/t.
Shanta CEO Eric Zurrin said on Wednesday that the company would accelerate plans to integrate the West Kenya project into its portfolio with plans to begin infill drilling and to further delineate the resource potential.
"The West Kenya acquisition is significant for Shanta Gold, creating an East African gold mining champion with realisable growth prospects and high asset quality across three attractive gold projects,” said Zurrin in a statement.
The purchase consideration is comprised of $7-million, $7.5-million shares in Shanta Gold issued to Barrick and a 2% life-of-mine net smelter return royalty over the project.
Accordingly, 54 650 211 shares in Shanta Gold have been issued to Barrick resulting in a proforma interest of 6.4% in Shanta.
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