Shanta Gold has acquired the south-western Kenyan asset from Barrick for $14.5m. Credit: Kenny Luo / Unsplash.

East African mining firm Shanta Gold has signed a definitive agreement to buy 100% of the shares of Barrick Gold’s subsidiary Acacia Exploration Kenya (AEKL).

The shares will be acquired from two of Barrick’s subsidiaries.

AEKL has a 100% participating interest in Afriore-held licences, including an existing high-grade resource in south-western Kenya.

The project is estimated to hold 1.18 million ounces (Moz) of gold grading 12.6 grams per tonne (g/t).

Valued at a total purchase price of $14.5m, the deal gives Shanta its first asset outside Tanzania.

Shanta will pay $7m in cash for the assets and $7.5m in shares, and a 2% net smelter return (NSR) will be with Barrick over the life of mine.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Mining Technology.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Shanta Gold CEO Eric Zurrin said: “The West Kenya acquisition is significant for Shanta Gold, creating an East African gold mining champion with realisable growth prospects and high asset quality across three attractive gold projects.

“One of Shanta’s competitive advantages is being able to operate long-hole open stoping operations more efficiently than its peers, which lends itself well to the advancement of the West Kenya Project.”

The West Kenya project covers an area of 1,161km², within the Lake Victorian gold field in north-west Tanzania and south-west Kenya. It consists of a total of seven prospecting licences (PL) issued in 2019.

PL 222, PL 223, PL 225 and PL 226 are 100% beneficially owned by Barrick while PL 210, PL 211 and PL 212 are 87.16% beneficially owned by Barrick.

The remaining 12.84% owned by Canadian exploration company Advance Gold on behalf of Gold Rim Exploration Kenya.

It hosts several Global Tier 1 assets, including the North Mara and Geita gold mines.

With the acquisition of the West Kenya project, Shanta will have a major presence in the greenstone gold region.

The project will also expand Shanta’s operating presence in East Africa and increase Shanta’s high-quality gold resource inventory to more than 3Moz of gold.

In July 2019, Shanta Gold brought its Ilunga underground mine at the New Luika Gold project in south-western Tanzania into commercial production.