Gold miner Barrick Gold’s Bulyanhulu Gold Mine has entered into an agreement to acquire six prospecting licences, in Tanzania, for $6-million.
It will acquire the six prospecting licences, which are adjacent to the Bulyanhulu mine, from the Mineral Industry Promotion and Consulting Company – a wholly-owned subsidiary of Tembo Gold Corporation.
Barrick says the prospects have significant potential to add mineral reserves to its asset base in Tanzania.
Under the terms of the agreement, Bulyanhulu is required to invest at least $9-million in the licence area over four years.
Concurrently, Bulyanhulu has subscribed to buy 5.5-million shares of Tembo at C$0.27 apiece.
Both the acquisition and the private placement are subject to approval of the TSX Venture Exchange and regulatory approvals in Tanzania.
Barrick expects the deals to close in the first quarter of 2022.
Barrick president and CE Mark Bristow says the acquisition is a significant step forward in the company’s strategy of increasing its investment in new growth opportunities in Tanzania and a further demonstration of the value-creation potential of its partnership with the Tanzanian government.
Barrick operates in the country through a joint venture company with the Tanzanian government called Twiga Minerals Corporation.