Canadian miners Teranga Gold (TSX:TGZ) and Barrick Gold (TSX:ABX; NYSE:GOLD) have secured key approvals from the government of Senegal to proceed with their previously announced transaction, pursuant to which Teranga will acquire a 90% interest in the Massawa gold project for $430 million from a wholly owned subsidiary of Barrick and its joint venture partner.
The Senegalese government will hold the remaining 10% interest in the project.
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The approvals also include a formal consent to Teranga’s plans to integrate Massawa into its existing Sabodala gold mine, as well as a formal waiver by the government of Senegal of its equity participation right to elect, on its behalf or on behalf of the private sector, to purchase up to an additional 25% of Massawa at market value. These approvals were key conditions precedent to closing of the transaction.
Barrick and Teranga expect to satisfy the remaining conditions precedent to closing of the transaction in the coming weeks, which include the granting of an exploitation licence and a residual exploration licence for Massawa.
