Shanta Gold Ltd. on Monday said it had acquired Barrick Gold Corp. subsidiary Acacia Exploration’s project in southwestern Kenya in a US$14.5-million deal that gives the Tanzania-focused miner its first asset outside the country.
The project, which Acacia Mining began exploring in 2010 before being bought out by Barrick, is estimated to hold 1.18 million ounces of gold with a grade of 12.6 grams a tonne.
Shanta bought the project for US$7-million in cash and US$7.5-million in shares issued to Barrick, making the Canadian miner Shanta’s fifth largest shareholder with a 6.4-per-cent stake.
The acquisition comes after Shanta Gold delevered its balance sheet by 69 per cent since 2017, according to chief executive Eric Zurrin.
“What that allows us to do now is look outside our existing boundaries, both in terms of our existing assets and the country,” Mr. Zurrin said.
Shares in Shanta Gold hit their highest level in three years in early trading, and were up 3.2 per cent by 0900 GMT.
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