BARRICK GOLD CORP. TRANSACTION
A Transformational Partnership With the World’s Top Gold Miner
On December 7, 2021, Tembo announced (See news release here) that it had entered into a binding agreement with Barrick Gold Corporation (TSE: ABX; NYSE: GOLD)(“Barrick”), Bulyanhulu Gold Mine Limited (“Buly“), a subsidiary of Barrick, agreeing to sell to Buly a 100% ownership interest in six of Tembo’s non-core prospecting licences. On April 22, 2022, Tembo announced the completion of this transaction.
The Licences sold (See Figure 1), are located in areas on which Tembo has not previously focused its exploration activities. Tembo retains its core licence on which all of Tembo’s exploration activities over the past two drilling campaigns have been conducted, and on which there remain a significant number of untested new targets, as well as the three prime targets on which the bulk of the drilling was carried out.
Figure 1: Before / After Visual
Transaction Highlights
Sale of Six Non-Core Licenses to Barrick Gold Corp.
Immediate Balance Sheet Strength
Provides Tembo with a significant upfront cash payment to advance development of our core target areas
US$6M
Unlocking Near Term Value
Barrick has committed to spending US$9M on exploration efforts to define resources on the acquired concessions
US$9M
Capturing The Future Upside Value
Barrick and Tembo have agreed to sliding scale contingent payments based on resource definition milestones on the acquired concessions up to a maximum total of five million ounces of resources in all categories
-
- $20/oz Au for the first million ounces
- $10/oz Au for the second million ounces
- $5/oz Au for ounces defined beyond the first two million ounces
Access to all technical data and ability to commission resource study in certain circumstances
up to
US$45M
TOTAL PARTERSHIP VALUE
US$60M
Barrick Gold Equity Investment
Creates a meaningful and long-term partnership with world’s second largest gold producer and one of the most influential companies within the East African region (~6% proforma ownership)