Toronto-based Barrick Gold Corporation has sold its Kenya-based gold projects to East Africa-focused miner Shanta Gold which is taking over “one of the highest grade gold projects in Africa.”
“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,” said Eric Zurrin, the chief executive officer of Shanta Gold, as quoted in a statement.
The projects’ JORC resource estimate claims resources of some 1.182 million oz of gold grading 12.6 g/t.
The transaction is worth a total of $14.5 million. Barrick Gold will retain a 2% life of mine net smelter return (NSR) royalty over the project, accord-ing to the statement, as well as become a shareholder in Shanta Gold with a stake of 6.4%.