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Barrick To Sell 90% Interest In Massawa Project For Up To $430 Mln - Quick Facts

Barrick Gold Corp. (GOLD,ABX.TO) announced Tuesday that it and its Senegalese joint venture partner have reached agreement to sell their aggregate 90 percent interest in the Massawa project in Senegal to Teranga Gold Corp. (TGZ.TO) for total consideration of up to $430 million.

The consideration consists of an up-front payment of $380 million, comprised of 20.72 million Teranga common shares with a value of $3.85 per share and an aggregate value of approximately $80 million and a cash payment of approximately $300 million, plus a contingent payment of up to $50 million, which is payable three years following closing.

Barrick will receive 92.5% of the total purchase price for its interest in the Massawa project, with the balance to be received by Barrick's local Senegalese partner for its minority interest.

On a pro forma basis, Barrick will hold 19,164,403 Teranga common shares, representing approximately 11.45 percent of Teranga's issued and outstanding common shares on closing.

Barrick is providing $25 million of the $225 million syndicated debt financing secured by Teranga in connection with the transaction.

The transaction is expected to close in the first quarter of 2020 and is subject to receipt of the Massawa exploitation license and residual exploration license from the Government of Senegal, certain other acknowledgments from the Government of Senegal and other customary closing conditions.

Teranga is a TSX-listed gold company whose flagship Sabodala gold mine in Senegal is located adjacent to the Massawa project, creating the opportunity for significant capital and operating synergies.

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