Teranga Gold has entered a definitive agreement where it will acquire a 90% interest in the Massawa Gold Project from a wholly-owned subsidiary of Barrick Gold Corporation and its joint venture partner, Compagnie Sénégalaise de Transports Transatlantiques Afrique de l’Ouest SA with the Government of Senegal holding the remaining 10% interest in Massawa.
Massawa is one of the highest-grade undeveloped open-pit reserves in Africa.
It is located within trucking distance of Teranga’s flagship Sabodala Gold Mine in Senegal, creating the opportunity for significant capital and operating synergies.
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The proximity of the projects and the combination of Sabodala’s mill and Massawa’s high-grade ore are expected to scale Sabodala into a top tier asset.
“The Massawa acquisition is transformational for Teranga and – by creating a top tier complex – the first in the country – an important milestone for the mining industry in Senegal,” says Richard Young,
Teranga’s President and CEO.
“We anticipate that production from the Sabodala Massawa Complex, together with our Wahgnion Gold Mine in Burkina Faso, will increase
Teranga’s targeted consolidated annual gold production and reposition Teranga as the next multi-asset, low-cost, mid-tier gold producer in West Africa, one of the world’s premier gold mining regions.”
Barrick President and CE Mark Bristow says the group had been pursuing the best means of bringing Massawa – discovered by its legacy company Randgold Resources 10 years ago – to account for the full benefit of all stakeholders.
The agreement with Teranga, which will realise the full value of this asset and create a substantial new West African gold mining company with significant African ownership, is the outcome of this process.
“Teranga has the appropriate infrastructure and processing facilities approximately 25 km away from Massawa and combining the orebodies and the geological prospectivity will add further benefits,” says Bristow.
The transaction is expected to close in the first quarter of 2020 and is subject to receipt of the Massawa exploitation license and residual exploration license from the Government of Senegal, as well as certain other acknowledgments and approvals from the Government of Senegal including Teranga’s integration plans for the Sabodala-Massawa Complex.