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Exploration|Gold|PROJECT|Projects|Infrastructure
Exploration|Gold|PROJECT|Projects|Infrastructure
exploration|gold|project|projects|infrastructure

Barrick partners with junior to explore Guiana Shield

4th February 2019

By: Marleny Arnoldi

Deputy Editor Online

     

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Canadian explorer Reunion Gold has formed a strategic alliance with gold major Barrick Gold to jointly explore and develop prospects in South America’s Guiana Shield.

Concurrently, TSX- and NYSE-listed Barrick will increase its interest in TSX-V-listed Reunion to 19.9%, from 15%, for 35-million shares, valued at $5.3-million through participation in a private placing.

The Guiana Shield includes Guyana, Suriname, French Guiana and the north and north-east regions of Brazil.

Reunion will initially contribute to the alliance the Waiamu, Aremu, Arawini and Oko projects, all located in Guyana. Its interests in the Dorlin, Haute Mana and Boulanger projects, in French Guiana, are not included in the alliance. However, Barrick retains a right of first refusal on these projects, and can in the future define any project, based on certain criteria, as a "designated project".

Barrick will initially fund an amount equal to $4.2-million on the initial "included projects", as credit for historical exploration expenditures spent by Reunion, with subsequent funding to be on a 50:50 basis between the companies.

As long as the alliance is in effect, if Reunion acquires an interest in any mineral property in the subject area (Guiana Shield) it will present the new project to Barrick, which will then elect to include the new project in the alliance. If included, Barrick will fund the initial costs and expenditures for the project, in an amount equal to Reunion’s incurred costs on the project up to a maximum of $250 000.

Barrick can at any time designate an included project as a designated project, following which the major will sole fund the designated project until the completion of a feasibility study.

Upon completion of a feasibility study, Barrick’s interest in the project will increase to 70% and Reunion will retain a 30% interest.  If Barrick does not deliver a feasibility study on the designated project, the project returns to the Alliance as an included project.

Reunion will manage all exploration projects within the alliance until such projects are defined as designated projects, while Barrick will manage all designated projects.

“This alliance addresses the concerns faced by explorers worldwide. The combination of skills, knowledge, working together create the conditions necessary for exploration and development success. The Guiana Shield is one of the best remaining places in the world for large scale gold discoveries.

“The alliance creates the opportunity to deploy skills and expertise effectively and efficiently. The Guiana Shield has been overlooked for a variety of historical reasons, including remoteness, lack of infrastructure, knowledge of how to conduct effective tropical exploration and an understanding of local conditions and laws,” said Reunion president and CEO Réjean Gourde.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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