Barrick Gold has announced that it has entered into a strategic alliance Reunion Gold. In a press statement from the company, the agreement forms a 50-50 alliance to jointly explore for, develop and mine certain mineral projects in the Guiana Shield. The shield includes Guyana, Suriname, French Guiana and the North and Northeast Regions of Brazil.
Furthermore, Reunion is set to contribute to the Alliance the Waiamu, Aremu, Arawini and Oko Projects, all located in Guyana. On the other hand, Barrick will fund an initial amount equal to US $4.2m on these projects. According to media reports, the funds will serve as credit for historical exploration expenditures by Reunion. Further still, subsequent funding is to be on a 50:50 basis between Reunion and Barrick.
As per the stipulations in the agreement, and as long as the Alliance remains in effect, should Reunion acquire an interest or an option to acquire an interest in any mineral property in the Subject Area, the company will have 90 days to elect to include the new project in the Alliance.
Barrick president and CEO, Mark Bristow explains that the SAA expands Barrick’s exploration footprint in the Guiana Shield. He further added that the Shield is a significantly underexplored region and one of the most prospective in the world for large scale gold discoveries.
As such, the Alliance will seek to identify and acquire properties that have the potential to yield discoveries consistent with Barrick’s definition of Tier 1 mines. This, he said, is while leveraging Reunion’s capabilities and proven track record in the region. That will also be combined with Barrick’s experience at advancing and developing world-class assets.