Barrick Gold (TSX: ABX) (NYSE: GOLD) has inked an earn-in agreement with Precipitate Gold (TSX-V: PRG) that gives it the right to earn a 70% stake in the junior’s Pueblo Grande project, located right next to the gold giant’s Pueblo Viejo mine in the Dominican Republic.
To earn the set interest, the world’s second largest gold producer will have to invest a minimum of $10 million in exploration and deliver a pre-feasibility study within six years of the agreement.
As part of the deal, Barrick has also agreed to subscribe for $1 million (Cdn$ 1.39m) of Precipitate’s common shares in a private placement, the Vancouver-based junior miner said in a separate statement.
“The injection of additional capital into the company allows Precipitate to continue the advancement of its other 100%-owned Dominican Republic projects,” president and chief executive, Jeffrey Wilson, said in the statement.
“Our exploration focus will immediately turn to near term drill targets emerging within the Company’s nearby Ponton gold project and the ongoing advancement of existing targets at the Juan de Herrera project, immediately adjacent to GoldQuest’s Romero project,” Wilson said.
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