Barrick agrees terms to sell rights to Bullfrog Gold

9 September 2020 (Last Updated September 9th, 2020 17:03)

US-based gold and silver exploration company Bullfrog Gold has signed a binding term sheet with gold major Barrick Gold to acquire rights to 1,500 acres adjoining the company’s Bullfrog gold deposit.

Barrick agrees terms to sell rights to Bullfrog Gold
The agreement also covers a C$22m ($16.8m) financing to be completed through Augusta Investments. Credit: Tjflex2.

US-based gold and silver exploration company Bullfrog Gold has signed a binding term sheet with gold major Barrick Gold to acquire rights to 1,500 acres adjoining the company’s Bullfrog gold deposit.

The agreement also covers a C$22m ($16.8m) financing to be completed through Augusta Investments.

Upon the completion of the transaction, Barrick and Augusta would become new cornerstone shareholders, with the gold major owning a 15.9% stake and Augusta holding 31.9% of Bullfrog’s outstanding shares.

Barrick president and CEO Mark Bristow said: “This is potentially another value-creating transaction which, once completed will consolidate assets to create an exciting new mining project, led by a skilled team and with strong financial backing.  It is also in line with Barrick’s strategy of bringing non-core assets to account.”

Bullfrog Gold also announced the appointment of Maryse Bélanger as president and CEO, along with the appointment of Donald Taylor, Daniel Earle, and a Barrick nominee as one of the directors to the company’s board.

Augusta Group’s Richard Warke said: “We are very excited to join forces with Barrick in this historic mining camp.  With the substantial resource that management at Bullfrog has identified to-date along with our injection of capital and expertise that our CEO Maryse Bélanger brings to the Company, we see a very exciting time ahead for Bullfrog and its shareholders.”

Earlier this month, Barrick, along with partner Zijin Mining, was in a high-profile dispute with the Papua New Guinea (PNG) government after the country’s Prime Minister James Marape rejected an application for a lease extension at the site back in April.

Last month, AngloGold Ashanti and Barrick Gold agreed to sell their 80% stake in the Morila gold mine in southern Mali to Australian company Mali Lithium.