Barrick and Teranga Obtain Key Approvals from the Government of Senegal for Teranga’s Acquisition of the Massawa Gold Proje...
February 13 2020 - 7:00AM
Teranga Gold Corporation (“Teranga” or the “Company”) (TSX:TGZ;
OTCQX:TGCDF) today announced that Barrick Gold Corporation
(“Barrick”) (TSX:ABX; NYSE:GOLD) and Teranga have obtained certain
key approvals from the Government of Senegal in order to proceed to
close the previously announced acquisition of a 90% interest in the
Massawa Gold Project (“Massawa”) from a wholly-owned subsidiary of
Barrick and its joint venture partner, Compagnie Sénégalaise de
Transports Transatlantiques Afrique de l’Ouest SA, with the
Government of Senegal holding the remaining 10% interest in Massawa
(the “Transaction”).
The approvals received 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 by the Government of
Senegal of an exploitation license and a residual exploration
license for Massawa.
The closing of the Transaction, as well as the
previously announced concurrent debt, prospectus, and private
placement financings (collectively, the “Financings”) is expected
within the first quarter of 2020. The completion of the Transaction
and the concurrent Financings are all inter-conditional and are
subject to customary closing conditions for transactions of this
nature.
Forward-Looking Statements
This press release contains certain statements
that constitute forward-looking information within the meaning of
applicable securities laws (“forward-looking statements”), which
reflects management's expectations regarding Teranga's future
growth and business prospects and opportunities. Forward-looking
statements include, without limitation, all disclosure regarding
possible events, conditions or results of operations, future
economic conditions expectations and anticipated courses of action.
Although the forward-looking statements contained in this press
release reflect management's current beliefs based upon information
currently available to management and based upon what management
believes to be reasonable assumptions, such forward-looking
statements are based upon assumptions, opinions and analysis that
management believes to be reasonable and relevant but that may
prove to be incorrect. Teranga cautions you not to place undue
reliance upon any such forward-looking statements.
The risks and uncertainties that may affect
forward-looking statements include, among others: the inherent
risks involved in exploration and development of mineral
properties, including government approvals and permitting, changes
in economic conditions, changes in the worldwide price of gold and
other key inputs, changes in mine plans and other factors, such as
project execution delays, many of which are beyond the control of
Teranga, as well as other risks and uncertainties which are more
fully described in Teranga's amended and restated Annual
Information Form dated July 31, 2019, and in other filings of
Teranga with securities and regulatory authorities which are
available on SEDAR at www.sedar.com. Teranga does not undertake any
obligation to update forward-looking statements should assumptions
related to these plans, estimates, projections, beliefs and
opinions change. Nothing in this document should be construed as
either an offer to sell or a solicitation to buy or sell Teranga
securities. All references to Teranga include its subsidiaries
unless the context requires otherwise.
About Teranga
Teranga is a multi-jurisdictional West African
gold company focused on production and development as well as the
exploration of approximately 5,500 km2 of land located on
prospective gold belts. Since its initial public offering in 2010,
Teranga has produced more than 2 million ounces of gold at its
Sabodala operation in Senegal. Focused on diversification and
growth towards its vision of becoming a mid-tier producer, the
Company recently announced commercial production at its second gold
mine, Wahgnion, which is located in Burkina Faso, and is carrying
out exploration programs in three West African countries: Burkina
Faso, Côte d’Ivoire and Senegal. Teranga applies a rigorous capital
allocation framework for its investment decisions.
Steadfast in its commitment to set the benchmark
for responsible mining, Teranga operates in accordance with
international standards and aims to act as a catalyst for
sustainable economic, environmental, and community development as
it strives to create value for all of its stakeholders. Teranga is
a participant of the United Nations Global Compact and a leading
member of the multi-stakeholder group responsible for the
submission of the first Senegalese Extractive Industries
Transparency Initiative revenue report.
Contact Information
Richard
Young |
Trish
Moran |
President & CEO |
VP, Investor Relations & Corporate Communications |
T: +1 416-594-0000 | E: ryoung@terangagold.com |
T: +1 416-607-4507 | E: tmoran@terangagold.com |
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