Barrick, Teranga obtain key approvals from Senegal for Massawa Gold Project

Barrick and Teranga obtain key approvals from the Government of Senegal for Teranga’s acquisition of the Massawa Gold Project

Teranga Gold Corporation today announced that Barrick Gold Corporation and Teranga have obtained certain key approvals from the Government of Senegal in order to proceed to close the previously announced acquisition of a 90 percent interest in the Massawa Gold Project from a wholly-owned subsidiary of Barrick and its joint venture partner, Compagnie Sénégalaise de Transports Transatlantiques Afrique de l’Ouest SA, with the Government of Senegal holding the remaining 10 percent interest in Massawa.

The approvals received include a formal consent to Teranga’s plans to integrate Massawa into its existing Sabodala Gold Mine as well as a formal waiver by the Government of Senegal of its equity participation right to elect, on its behalf or on behalf of the private sector, to purchase up to an additional 25 percent of Massawa at market value. These approvals were key conditions precedent to closing of the Transaction.

Barrick and Teranga expect to satisfy the remaining conditions precedent to closing of the Transaction in the coming weeks, which include the granting by the Government of Senegal of an exploitation license and a residual exploration license for Massawa.

The closing of the Transaction, as well as the previously announced concurrent debt, prospectus, and private placement financing is expected within the first quarter of 2020. The completion of the Transaction and the concurrent Financings are all inter-conditional and are subject to customary closing conditions for transactions of this nature.