Tembo Gold Corp (TSX-V:TEM) entered into a binding agreement with Barrick Gold Corporation (TSX:ABX; NYSE:GOLD) in respect of the sale of certain non-core prospecting licenses.
The consideration payable is for: (i) US$6,000,000; (ii) contingent payments to be based on the inferred, indicated and measured gold mineral resources identified in the areas of land which are covered by the Licenses up to an aggregate amount of US$45,000,000; and (iii) a requirement to invest a minimum of US$9,000,000 in the Licence Area over the course of the four years.
Tembo retains its core licence on which all exploration activities over the past two drilling campaigns have been conducted, and on which there remains a significant number of untested new targets, as well as the three prime targets on which the bulk of the drilling was carried out.
Barrick president and chief executive Mark Bristow said the acquisition was 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.
Tembo president and CEO David Scott stated “This agreement is a key milestone in the advance of Tembo’s exploration on the Licence Area that the Company has long considered some the most prospective in the Lake Victoria Goldfield and a very significant confirmation of the stated potential for a significant gold discovery on this ground. We do not underestimate the significance of Barrick’s interest and the conclusion of this Purchase Agreement that will enable a serious advance of our exploration strategy, and our expectation and hope is that a number of significant new discoveries will be made, benefitting both the companies that are making the investment, the surrounding communities and this mining friendly country of Tanzania.”
⛏ Barrick Gold Corporation CEO Mark Bristow (00:00)
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