Barrick Gold Corp. is selling its Massawa gold project in Senegal for up to US$430-million to West African junior producer Teranga Gold Corp., as part of its push to shed assets that don’t move the financial needle.
After buying African-focused Randgold Resources Ltd. earlier this year for US$6-billion, Toronto-based Barrick has been ridding itself of anything it deems too small, or not sufficiently profitable.
In the past month alone, Barrick has sold US$1.2-billion in assets, or about 80 per cent of what it hopes to achieve by the end of next year.
Teranga, which is also based in Toronto, will pay Barrick US$380-million upfront for Massawa, consisting of US$300-million in cash and US$80-million in stock. Barrick may receive an additional US$50-million in cash from Teranga over the next three years, if gold hits certain levels.
Teranga is funding the acquisition of Barrick’s Massawa project through a combination of fresh debt and equity financings, including a US$106-million common share bought deal, which quickly sold out on Tuesday.