Revival Gold has exercised its option to acquire 100% of Barrick Mining’s stake in the Mercur gold project, a major step forward that could enable the restart of gold production at the Utah-based site in US.
The option to acquire Barrick’s interest was granted under a mineral lease and option-to-purchase agreement signed in May 2021.
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The agreement covers 996 hectares (ha) of mineral interests, expanding the overall Mercur project area to roughly 7,200ha.
Revival Gold has completed a preliminary economic assessment (PEA) for the Mercur gold project in mid-2025.
The company also carried out a 13,000 metres drill campaign this year to support a planned pre-feasibility study (PFS) in 2026 and to commence the state mine permitting process in Utah.
The PEA forecasts average annual production of 95,600 ounces (oz) of gold over a mine life of ten years.
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By GlobalDataIt also estimates an after-tax net present value (NPV) of $294m at 5% discount rate and a gold price of $2,175/oz.
The permitting process is expected to take about two years.
Revival Gold president & CEO Hugh Agro said: “Barrick produced 1.4 million ounces of gold at Mercur, but never controlled the contiguous Homestake claims and west Mercur land position. This option exercise completes the consolidation of a large Carlin-style gold system – a rarity outside the Nevada gold majors – and comes with paved road access, an energised powerline to the site and extensive technical information. Mercur is our top priority to move to production.
“Utah is a favourable jurisdiction, and we expect a relatively short timeline to re-permit Mercur for mining.”
To exercise the option, Revival Gold has to spent at least C$6m ($4.35m) on exploration by 2 January 2026, a condition that has already been met.
As a part the option agreement, Revival Gold will execute a membership interest purchase agreement (MIPA) with Barrick, through which it will acquire Barrick Resources (USA) or its successor company.
Compensation to Barrick will include $5m at option closing, and $5m on each of the first, second, and third anniversaries of the start of commercial production.
Payments may be made in cash or, at Barrick’s discretion, in Revival Gold common shares.
Agro added: “Mercur’s PEA economics have the potential to drive transformational value for Revival Gold’s shareholders. Barrick has operated to high standards of environmental and community stewardship at Mercur and Revival Gold is committed to upholding the same high standards.”
Additionally, on closing, Revival Gold will provide Barrick a 2% net smelter return (NSR) royalty on the mineral interests included in the agreement, and a 1% NSR royalty on all mineral properties within 1km of the covered mining claims in which Revival Gold has an interest.
The acquisition is expected to close on or around 1 April 2026, and is contingent upon regulatory approvals, execution of the MIPA, and other customary conditions, including environmental surety bonding.
