Senegal approves Teranga and Barrick's Massawa transaction

14th February 2020 By: Creamer Media Reporter

Senegal has approved TSX-listed Teranga Gold’s $430-million acquisition of the Massawa mine from gold major Barrick Gold.

The Senegal approvals also include a formal consent to Teranga’s plans to integrate Massawa into its existing Sabodala gold mine, as well as a formal waiver by the government of Senegal of its equity participation right to elect, on its behalf or on behalf of the private sector, to purchase up to an additional 25% of Massawa at market value.

These approvals were key conditions precedent to closing of the transaction, which was announced in December.

Barrick and Teranga expect to satisfy the remaining conditions precedent to closing of the transaction in the coming weeks, which include the granting of an exploitation licence and a residual exploration licence for Massawa.

The transaction should close in the first quarter of 2020.