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Barrick making moves – stock seems to like it

Posted by Buygold @ 3:53 on April 13, 2020  
*Barrick Gold to Spend $1M on Golden Minerals Stock and Invest $10M Into Exploration to Earn a 70% Interest in Golden Minerals’ El Quevar Project
Benzinga

Golden Minerals Signs Earn-In Agreement With Barrick Gold Corporation at El Quevar

6:40 am ET April 13, 2020 (Globe Newswire) Print
Golden Minerals Company (NYSE American and TSX: AUMN) (“Golden Minerals”, “Golden” or “the Company”) announced today that it has entered into an earn-in agreement (the “Agreement”) with Barrick Gold Corporation (“Barrick”) (TSX: ABX and NYSE: GOLD) whereby Barrick has acquired an option to earn a 70% interest in Golden’s El Quevar project located in the Salta Province of Argentina.As part of the Agreement, Barrick will purchase US$1.0 million of Golden Minerals shares pursuant to a private placement transaction at a price of $0.21 per share, which is equal to the 20-day VWAP of the Company’s common shares on the NYSE American exchange on the date of the agreement. The shares will be subject to applicable restrictions on transfer under U.S. and Canadian securities laws.

In order to earn an undivided 70% interest in the El Quevar project, Barrick must:

— Spend US$10 million on exploration,

— Deliver an NI 43-101-compliant Pre-Feasibility Study (“PFS”) describing a potentially profitable operation with mineral resources of not less than 2 million gold equivalent ounces, and

— Deliver a written notice of exercise to Golden within eight years.

Barrick’s US$10 million in defined work expenditures must be incurred over a total of 8 years. Requirements include US$0.5 million per year in years 1 and 2; US$1.0 million per year in years 3, 4 and 5; and US$2.0 million per year in years 6, 7 and 8, although amounts may be spent earlier than required. The PFS must be delivered by Barrick by the end of year 8.

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.