View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
August 20, 2020

Shanta Gold completes purchase of Barrick’s gold projects in Kenya

East African mining firm Shanta Gold has completed the 100% acquisition of Barrick Gold’s subsidiary Acacia Exploration Kenya (AEKL).

East African mining firm Shanta Gold has completed the 100% acquisition of Barrick Gold’s subsidiary Acacia Exploration Kenya (AEKL).

The shares were acquired from three of Barrick’s subsidiaries.

In February, the East African mining firm announced the acquisition of AEKL from Barrick in a cash-and-share transaction.

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 gave Shanta its first asset outside Tanzania.

The purchase consideration comprised $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.

Accordingly, more than 54 million shares in Shanta Gold have been issued to Barrick resulting in a proforma interest of 6.4% in the former company.

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.

“Now that the Transaction is complete, we are turning our focus to integrating West Kenya into the Shanta portfolio and accelerating progress on the ground with plans to begin infill drilling and to further delineate the resource potential.

“We are committed to responsibly investing in Kenya and working with the government, communities and local stakeholders.”

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

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Mining Technology