- Mega-miner Barrick Gold (ABX) is selling a collection of rights and claims for the Bullfrog mine in Nevada to Bullfrog Gold
- Through the deal, Bullfrog will gain around 1,500 acres of mining claims as well as Barrick’s historical resources, permits, rights of way and water rights
- In exchange Barrick will receive 54.6 million units, which each contain one share in Bullfrog Gold and one warrant at an exercise price of C$0.30 over four years
- The substantial share exchange will net Barrick a 16.8 per cent stake in Bullfrog Gold, as well as a two per cent smelter royalty on minerals produced from the claims
- Barrick Gold (ABX) is down 1.77 per cent and is trading at $36.15 per share
Mega-miner Barrick Gold (ABX) is selling a collection of rights and claims for the Bullfrog mine in Nevada to Bullfrog Gold.
Barrick originally operated the mine between 1989 and 1999, producing more than 2.3 million ounces of gold in that time.
Bullfrog Gold now hopes to access the 525,000 ounces of gold estimated to still remain on the site and forged the deal to acquire of Barrick’s mining claims, historical resources, permits, rights of way and water rights.
Through the deal Bullfrog will expand its existing claims in the area by around 1,500 acres. In exchange Barrick will receive 54.6 million units, which each contain one share in Bullfrog Gold and one warrant at an exercise price of 30 cents over four years.
The substantial share exchange will net Barrick a 16.8 per cent stake in Bullfrog Gold, as well as a two per cent smelter royalty on minerals produced from the claims.
As part of the deal Barrick can also nominate a director to Bullfrog’s board as long as it maintains at least 10 per cent stake in the company moving forward.
Concurrent with the Barrick Gold deal, Bullfrog has finalised a cash-for-share deal with mining sector focused management group Augusta Investments. Through the deal Augusta will receive 110 million units in Bullfrog in exchange for a $22 million investment.
Bullfrog’s CEO and President David Beling said he was delighted sign of the deals’ definitive agreements.
“Bullfrog will be well-funded to expedite the exploration and development of the Bullfrog project, and we are excited to welcome our new cornerstone shareholders, Barrick and Augusta,” he added.
Barrick Gold (ABX) is down 1.77 per cent and is trading at $36.15 per share at 10:39am EDT.
