latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/shanta-to-acquire-barrick-s-west-kenya-gold-project-57024368 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

Shanta to acquire Barrick's West Kenya gold project

Mining Exploration Insights December

Mining Exploration Insights: Dip in gold drilling weighs on results

Mining Exploration Insights: Is the exploration sector back on recovery?

State of the Market: Mining Q2-2019


Shanta to acquire Barrick's West Kenya gold project

Shanta Gold Ltd. agreed to purchase Barrick Gold Corp.'s West Kenya gold project for US$7 million cash, US$7.5 million in shares and a 2% life of mine net smelter return royalty, payable on actual future gold production.

Shanta also agreed to take on the project's cash liabilities, expected to total up to US$4 million, according to a Feb. 10 release.

Barrick's former unit Acacia Mining PLC and other previous owners have spent US$55 million on exploration at the West Kenya project since 2010.

The project covers 1,161 square kilometers and hosts a NI-43 101-compliant inferred mineral resource of 2.9 million tonnes with a mean gold grade of 12.6 g/t containing about 1.2 million ounces within the Isulu and Bushiangala prospects. The 2018 resource estimate used a cutoff grade of 2 g/t for Isulu and 7 g/t for Bushiangala.

Barrick will become Shanta Gold's fifth largest shareholder with a 6.4% interest as a result of the transaction.

Immediately upon deal completion, expected around mid-2020, Shanta plans to proceed with a scoping study before carrying out an infill drilling campaign.

The company said that additional work to delineate the size of the orebody, update the mineral resource estimate and proceed to a construction decision could take up to 36 months.