PRECIOUS METALS

Barrick expands footprint in Tanzania

Barrick Gold’s Twiga Minerals joint venture in Tanzania says Barrick’s Bulyanhulu gold mine is acquiring six near-mine prospecting licences, for US$6 million plus other payments and a minimum $9 million spending commitment.

Staff reporter
 Underground at Barrick Gold’s majority-owned Bulyanhulu gold mine in Tanzania

Underground at Barrick Gold’s majority-owned Bulyanhulu gold mine in Tanzania

Twiga was set up in January 2020 to share economic benefits 50:50 with the government, as part of a deal following Barrick's acquisition of its troubled subsidiary Acacia Mining.

Bulyanhulu is acquiring the licences from TSXV-listed Tembo Gold, and is making a circa C$1.5 million investment in the junior, at 27c per share, for a 5.5% stake.

Tembo said the contingent payments could amount to US$45 million, based on the potential inferred, indicated and measured resources identified on the licences.

It was retaining its core licence where its drilling had been focused, the company said.

"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," Tembo president and CEO David Scott said.

Barrick said the new licences had the potential to add significant mineral reserves to its asset base in Tanzania.

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 of its partnership with the government.

Barrick also has the North Mara gold mine in Tanzania and other exploration licences but is winding down Buzwagi, which was processing stockpiles this year.

Barrick shares closed down 0.38% in Toronto to C$23.51, at the lower end of a one-year range, capitalising it at $41.8 billion (US$33 billion).

Tembo shares (TSXV: TEM) reached a 52-week high intraday of 36c, before closing down 5% to 28c to value it at $26 million (US$20.5 million).

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