Barrick makes move on Atac's Carlin-type gold
Share
Tweet
Last updated 1/16/2018 at 7:55pm
Atac Resources Ltd. April 10 announced that Barrick Gold Corp. has signed an agreement to earn up to a 70 percent stake in the Orion project, which blankets the central section of Atac's Rackla Gold property in the Yukon Territory.
This deal consists of a potential total investment by Barrick of roughly C$63.3 million, including a C$8.3 million private placement and a two-staged C$55 million exploration earn-in option on Orion.
Previously, Atac subdivided its roughly 185-kilometer- (115 miles) long Rackla property into two projects - Rau, an area at the western end of the property that includes the Tiger gold deposit, and Nadaleen, an area that includes the Orion deposit and a number of other Carlin-style gold discoveries made in the eastern half of Rackla.
The property is now divided into three projects - Rau, which encompasses 660 square kilometers (255 square miles) at the western end of Rackla; Osiris, a 302-square-kilometer (117 square miles) property at the eastern end of Rackla that hosts the Osiris, Conrad, Ibis, and Sunrise discoveries; and Orion, a 780-square-kilometer (301 square miles) section in the middle that hosts the Orion, Anubis, and eight other early stage Carlin-type gold prospects.
It is this central project that Barrick has the option to earn up to 70 percent.
To earn an initial 60 percent interest, Barrick must spend C$35 million on exploration at the project over the next five years.
Upon spending this initial earn-in, the companies will form a joint venture and Barrick can earn another 10 percent interest in Orion by investing an additional C$20 million before the end of 2026.
"Atac's generative exploration skills and Barrick's knowledge and experience in Carlin-style systems will be a great combination to unlock the full potential of this district," said Rob Krcmarov, executive vice president, exploration and growth, Barrick.
The gold major also agreed to buy 16.68 million Atac shares at C50 cents each.
Atac plans to apply the C$8.34 million raised towards its planned C$10 million exploration program on the Rau and Osiris projects in 2017.
Upon closing of the private placement, expected on May 3, Barrick will own approximately 19.9 percent of Atac's shares.
-SHANE LASLEY
Reader Comments(0)