Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick”) announced that it has entered into a definitive agreement to sell a portfolio of royalties (the “Portfolio”) to Maverix Metals Inc. (“Maverix”) for total consideration of up to $60 million.
The Portfolio consists of 22 royalties on the production of minerals from mines located in North America, South America, Australia and Africa. The total consideration of $60 million consists of $50 million in cash payable on closing of the Portfolio sale, subject to the exercise of any right of first refusal or buy-down right by the counterparties under certain royalties, and three contingent payments:
- $6 million if the operator of the Eskay Creek project in British Columbia (Skeena Resources Ltd.) obtains all material permits necessary to commence construction of the mine within six years of closing;
- $2 million if Maverix receives cash payments from the Portfolio, excluding the Eskay Creek royalty, equal to or greater than $10 million within six years of closing; and
- a further $2 million if Maverix receives cash payments from the Portfolio, excluding the Eskay Creek royalty, equal to or greater than $20 million within six years of closing.
The transaction is targeted to close at the end of the third quarter of this year following the satisfaction of customary closing conditions.
Barrick Enquiries
President and CEO
Mark Bristow
+1 647 205 7694
+44 788 071 1386
SEVP Strategic Matters
Kevin Thomson
+1 416 307 5150
Investor and Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: barrick@dpapr.com
