Modern Mining March 2020

Barrick completes Massawa transaction

Quick progress in Bougouni’s mining licence application Kodal Minerals has provided an update on the progress of its mining licence application for the Bougouni Lithium project located in south- ern Mali. Senior representatives from Kodal Minerals, including CEO Bernard Aylward, project man- ager Steve Zaninovich and country manager Mohamed Niare, attended the first technical meeting to review the mining licence applica- tion with the Direction Nationale de la Géologie et des Mines (DNGM). The meeting reviewed all technical aspects of the project and proposed development, as outlined in the feasibility study submitted by the company. Kodal Minerals provided a sum- mary presentation and responded to general questions regarding the proposed operation. Following endorsement from the DNGM, and with environmental approval already granted, the next step in the mining licence applica- tion process is for the company to attend the ministerial commission meeting. This session is convened by the Ministry of Mines and repre- sentatives from various ministries are invited, including the Ministry of Finance. “Our mining licence application is proceed- ing quickly, and we are pleased with how the DNGM technical review meeting progressed. Kodal Minerals has previously presented the geology, resources and proposed mining development to the DNGM and has hosted technical visits to our Bougouni site on previ- ous occasions and continues our practice of working closely with the Malian authorities to ensure progress of our project,” says Bernard Aylward, CEO of Kodal Minerals. 

ounce; and US$50-million if the three-year average gold price exceeds $1 600 per ounce. Barrick president and chief executive Mark Bristow says Massawa is one of the largest unexploited gold deposits in West Africa and its legacy company Randgold Resources had developed this over a period of years to the point where its value could now be optimally realised for the benefit of all its stakeholders, which includes the Senegal government. “Teranga is best placed to achieve this as it already owns the nearby Sabodala mine and Sabodala’s combination with Massawa is expected to deliver signifi- cant synergies. Barrick will participate in the upside of the combined asset through the 11% interest it is acquiring in Teranga through this transaction,” he says. 

In line with its strategy of focusing on Tier One assets, Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) has completed the recently announced transaction of combin- ing its Massawa gold project in Senegal with Teranga Gold Corporation’s Sabodala gold mine. Barrick and its Senegalese partner held a 90% interest in the Massawa project. As part of the transaction, Barrick and its partner will receive an up-front payment valued at US$380-million at the time of announcement, comprised of 20 718 273 Teranga common shares (with a value at the time of announcement of approximately US$80-million based on the Teranga share price at that time of US$3,85 per share), a cash payment of approximately US$300- million, and a contingent payment of up to US$50-million which is based upon the average gold price for the three-year period immediately fol- lowing closing. The con t i ngen t

payment, which is payable three years following closing, is: US$25-million if the three-year average gold price is greater than US$1 450 and less than US$1 500 per ounce; US$35‑million if the three-year average gold price is greater than US$1 500 and less than US$1 600 per

Massawa is believed to be one of the largest unexploited gold deposits in West Africa.

March 2020  MODERN MINING  5