Barrick Gold to Invest $10 Million in Dominican Republic

SEATTLE (Scrap Monster): Barrick Gold Corporation has signed a definitive earn-in agreement with Precipitate Gold Corp. The agreement gives Barrick the right to earn a 70% interest in Precipitate’s Pueblo Grande Project in the Dominican Republic.

To earn its interest, Barrick must incur a minimum US$10.0 million in exploration expenditures. It should also deliver a qualifying Pre-feasibility Study within six years from the date of start of the agreement. In addition, Barrick needs to complete a minimum of 7,500 metres of drilling before the end of six-year period. Meantime, Barrick has agreed to subscribe for $1 million of the Vancouver-based junior miner’s common shares in a private placement.

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The $10 million on exploration activities has to be spent over a period of 6 years in such a way that US$2.0 million in aggregate is spent before the second anniversary, with a US$1.0 million guaranteed minimum expenditure. The expenditure of $3.5 million, $5 million, $7 million and $10 million in aggregate must be spent before third, fourth, fifth and sixth anniversary respectively.

The capital injection by Barrick will allow Precipitate to go ahead with the advancement of its other 100%-owned Dominican Republic projects.

The satisfaction of the earn-in conditions will lead to creation of a joint venture which will be owned 70% by Barrick and 30% by Precipitate.