Barrick Gold Corp (TSX: ABX) (NYSE: GOLD) is looking to expand its land holdings. The company announced this morning that it has entered into an earn-in agreement with Precipitate Gold Corp (TSXV: PRG) for the firms Pueblo Grande project in the Dominican Republic.
Under the terms of the arrangement, Barrick has entered into an agreement to acquire up to a 70% stake in Precipitate’s gold project. While classified as an earn-in agreement, the details of such agreement were not provided.
In connection with the earn-in agreement, Barrick has also subscribed for subscription receipts in Precipitate at a price of $0.11 per unit, for a total sum of just under $1.4 million. 12,713,636 common shares of Precipitate will be issued to Barrick in connection with the transaction, resulting in Barrick owning a 12..02% stake in the exploration firm.
The Pueblo Grande project is significant for Barrick in that it surrounds its Pueblo Viejo joint venture mine, which is one of the top 5 largest gold mines in the world and the largest active gold mine in South America. Over 200 historic drill holes have occurred on the property, totaling over 29,500 meters. New drilling on site was expected to commence in the first quarter of 2020.
Barrick Gold last traded at $24.37 on the NYSE.
Information for this briefing was found via Sedar and Barrick Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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