Dar es Salaam, Tanzania – Twiga Minerals Corporation, a joint venture between Barrick Gold Corporation and the Government of Tanzania, has announced the acquisition of new prospecting licences in Tanzania by Bulyanhulu Gold Mine, a subsidiary of Barrick.
Bulyanhulu has entered into a binding agreement with Barrick, Tembo Gold Corp., the Mineral Industry Promotion and Consulting Company, a wholly-owned subsidiary of Tembo, dated December 7, 2021 in respect of the acquisition of certain prospecting licences.
Pursuant to the Purchase Agreement, Bulyanhulu will acquire from MIPCCL a 100% interest in six prospecting licences held by MIPCCL. The Licences are located in areas adjacent to the Bulyanhulu mine and have the potential to add significant mineral reserves to Barrick’s asset base in Tanzania.
Under the terms of the Purchase Agreement, the purchase price payable by Bulyanhulu is $6 million, plus certain other contingent payments.
Such contingent payments will be calculated based on the inferred, indicated and measured gold mineral resources identified in the areas of land which are covered by the Licences (the “Licence Area”) using Barrick standards for determining mineral resources.
Bulyanhulu is required to invest a minimum of $9 million in the Licence Area over the course of the four years following the closing of the Transaction. 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 of its partnership with the government.