This archive report was first published on 5 May 2020.
Published on May 5, 2020, a London AIM-listed East Africa-focused gold producer, Shanta Gold, plans to complete the acquisition of Canadian miner Barrick Gold's assets in Kenya by June.
The acquisition includes seven Western Kenya gold mining licences, which Barrick Gold Corporation announced it was selling in a cash-and-stock transaction worth a total of $14.5 million (Sh1.4 billion) earlier this year.
Shanta Gold says it will fast-track gold production in Kenya once the transaction is complete, with the company focused on unlocking value and progressing the project.
The West Kenya project has an inferred mineral resource estimate of 1.1 million ounces, grading 12.6g/t gold, making it one of the highest grading gold deposits in Africa.
Under the deal, Barrick will take $7 million (Sh700 million) in cash and a 6.4 percent stake or 54.6 million shares of Shanta valued at $7.5 million (Sh753 million), making it the fifth largest shareholder in Shanta.
Shanta has also agreed to pay Barrick a two percent royalty rate, based on actual gold production in the future.
