Toronto-based company Barrick Gold (TSX, NYSE:$ABX), the largest gold mining company in the world, is just about to become even bigger. Just recently, the company finalized the acquisition of a mining project, the Robertson Property, in Nevada that had been abandoned in 2015 because of financial issues.
When gold prices rose last year, Barrick Gold had approached its former partner Coral Gold Resources (TSXV:$CLH) to acquire the property that was located 60 miles south of Elko, Lander County, Nevada. The finalized transaction cited a US$15.75 million (Cdn$20.27, based on the current exchange rate) payment in cash from Barrick to Coral, as well as returning the 4,150,000 common shares of Coral that had been held by Barrick. The deal also included a 1% to 2.25% net smelter returns royalty, which is to be paid quarterly and can be subjected to potential advance royalty payments.
Additionally, if the Robertson property does not go into production by December 31, 2023, then advance royalty payments of $0.5M have be made to Coral starting January 1, 2024 until commercial production begins and/or January 2, 2033. The payments will be non-refundable and fully credited against any future obligations under the NSR. As well, Barrick will be held responsible for all liabilities relating to the property, and will provide replacement security for the reclamation bond.
Robertson covers about 8,480 acres of land and is made up of 415 claims and nine patented claims. The property now owned by Barrick include the Core, Gold Ridge, Excluded, and the RUF mining claims. Other assets known as the Norma, Sass, Eagle, and JDN mining claims will still remained owned by Coral.
Rob Krcmarov, Barrick’s executive vice president in exploration and growth, commented on the company’s purchase of the property, saying that Barrick has a vision to create a multi-mine operation in Nevada. Krcmarov stated that this is done in hopes to deliver long-term value to Barrick’s shareholders as well as community partners.
Meanwhile, Vancouver-based company Coral says it will use the money received from the sale to help fund its other projects on the Cortez Trend.
Featured Image: twitter/Coral Gold Resources
