Barrick Agrees to Sell Royalty Portfolio to Maverix Metals for Total Consideration of Up To $60 Million
September 01 2022 - 6:30PM
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick”) today
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
7738Email: barrick@dpapr.com |
Website: www.barrick.com
Cautionary Statement on Forward-Looking
Information
Certain information contained or incorporated by
reference in this press release, including any information as to
our strategy, projects, plans, or future financial or operating
performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “will”, “contingent”, “if”,
“expecting” and similar expressions identify forward-looking
statements. In particular, this press release contains
forward-looking statements including, without limitation, with
respect to the consideration for the sale of the Portfolio,
including the contingent payments, and the anticipated timeline for
the closing of the transaction.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by Barrick as at the date of this
press release in light of management’s experience and perception of
current conditions and expected developments, are inherently
subject to significant business, economic, and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements, and undue reliance should not be
placed on such statements and information. Such factors include,
but are not limited to: fluctuations in the spot and forward price
of gold or certain other commodities; the speculative nature of
mineral exploration and development; changes in national and local
government legislation, taxation, controls or regulations and/ or
changes in the administration of laws, policies and practices,
expropriation or nationalization of property and political or
economic developments in the jurisdictions where Barrick operates;
risks associated with new diseases, epidemics and pandemics,
including the effects and potential effects of the global Covid-19
pandemic; litigation and legal and administrative proceedings;
employee relations including loss of key employees; increased costs
and physical risks, including extreme weather events and resource
shortages, related to climate change; and availability and
increased costs associated with mining inputs and labor. In
addition, there are risks and hazards associated with the business
of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion, copper
cathode or gold or copper concentrate losses (and the risk of
inadequate insurance, or inability to obtain insurance, to cover
these risks).
Readers are cautioned that forward-looking
statements are not guarantees of future performance. Specific
reference is made to the most recent Form 40-F/Annual Information
Form on file with the SEC and Canadian provincial securities
regulatory authorities for a more detailed discussion of some of
the factors underlying forward-looking statements and the risks
that may affect Barrick’s ability to achieve the expectations set
forth in the forward-looking statements contained in this press
release. Barrick disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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