Teranga Gold has announced the completion of the acquisition of Massawa gold project in Senegal, Africa from a Canadian mining company, Barrick Gold and its Senegalese joint venture partner CSTTAO.
As per the terms of the deal, Teranga Gold will now own a 90% stake in the project while the remaining 10% is owned by the Government of Senegal.
The transaction follows an agreement signed by the Teranga Gold with Barrick Gold and its partner to acquire the project for up to $430m in December last year.
The consideration also includes a contingent payment of up to $50m which is based upon the average gold price for the three-year period immediately following the completion of the transaction.
Teranga said that it has received Massawa exploitation license and residual exploration license and a formal consent to integrate the project into its existing Senegalese gold operation from the Senegal government.
Barrick president and chief executive Mark Bristow said: “Massawa was one of the largest unexploited gold deposits in West Africa and its legacy company Randgold Resources had developed this over a period of years to the point where its value could now be optimally realized for the benefit of all its stakeholders which includes the Senegal Government.”
Massawa gold project details
The Massawa gold project is one of the highest-grade undeveloped open-pit gold projects located in Africa.
It is located approximately 700km south-east of Dakar, the capital city of Senegal.
It includes five main open-pit deposits namely, the Massawa Central Zone (CZ), Massawa North Zone (NZ), Sofia Main, Sofia North, and Delya, in addition to two satellite deposits named Tina and Bambaraya.
