Barrick Gold Signs Earn-In Agreement with Golden Minerals Company

SEATTLE (Scrap Monster): Barrick Gold Corporation has entered into an earn-in agreement with Golden Minerals Company. Further to the agreement, Barrick has acquired an option to earn a 70% interest in Golden’s El Quevar silver project located in the Salta Province of Argentina.

As part of the agreement, Barrick will purchase $1 million of Golden Minerals shares at a price of $0.21 per share. The transaction will be subject to applicable restrictions under the U.S. and Canadian securities laws.

In order to earn 70% interest in the project, Barrick needs to satisfy certain conditions. Firstly, it has to spend $10 million on exploration activities, which has to be spent over a period of 8 years. Also, it must deliver Pre-Feasibility Study (PFS) describing mineral resources of not less than 2 million gold equivalent ounces by the end of eighth year. In addition, Barrick needs to deliver a written notice of exercise to Golden Minerals within 8 years.

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Barrick has all rights to withdraw from the agreement upon spending a minimum of $1 million in capital expenditures, by providing one-month notice.

The El Quevar properties will be held by a new entity called NewCo. Upon earn-in, Barrick will have 70% holding in NewCo, whereas the remaining 30% will be owned by Golden Minerals.