To acquire the interest, Barrick will have to invest a minimum of $10m in exploration. Credit: Shaan Hurley.

Barrick Gold has signed an earn-in agreement with precious and base metals explorer Precipitate Gold to acquire a 70% stake in the company’s Pueblo Grande project.

The Pueblo Grande project is located next to Barrick’s Pueblo Viejo mine in the Dominican Republic. Pueblo Viejo is a joint venture between Barrick Gold (60%) and Newmont Goldcorp (40%).

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

As conditions of the agreement, Barrick will have to invest a minimum of $10m 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 $1m of Precipitate’s common shares through a private placement.

Precipitate Gold president and CEO Jeffrey Wilson said: “We are pleased to announce the agreement with Barrick whereby one of the largest gold mining companies in the world has agreed to a substantial earn-in arrangement to advance our 100% owned Pueblo Grande Project to a pre-feasibility stage in exchange for a 70% interest.

“The work expenditure commitments and expeditious timeline to completion of a pre-feasibility study supports the company’s belief that the Pueblo Grande Project represents an important and prospective land package warranting a substantial budget for extensive property-wide exploration and drilling.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“Barrick’s technical and financial capacity to conduct this work provides Precipitate shareholders with upside leverage, while mitigating risk and limiting potential share dilution to finance work programmes of this scale.”

The deal comes more than a year after Precipitate took over all of Everton’s Dominican Republic exploration concessions, consisting of the Pueblo Grande project and the Ponton project.

Last month, Barrick Gold announced its plans to extend the life of the Pueblo Viejo gold mine beyond 2040.