African Mining Network

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AMN - SENEGAL: Key approvals for Massawa acquisition

Teranga Gold Corporation and Barrick Gold Corporation have obtained key approvals from the Government of Senegal to proceed to close the acquisition by Teranga of a 90% interest in the Massawa Gold Project. The acquisition is from a wholly-owned subsidiary of Barrick and its JV partner, Compagnie Sénégalaise de Transports Transatlantiques Afrique de l’Ouest SA, with the Government of Senegal holding the remaining 10%.

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 with Barrick and Teranga expecting to satisfy the remaining conditions precedent to closing of the transaction in the coming weeks. These include the granting by the Government of Senegal of an exploitation licence and a residual exploration licence for Massawa.

The closing of the transaction, as well as the concurrent debt, prospectus and private placement financings is expected within the current quarter.

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.

Teranga is a multi-jurisdictional West African gold company focused on production and development as well as the exploration of around 5,500sqkm 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 in Burkina Faso and is carrying out exploration programs in three West African countries - Burkina Faso, Côte d’Ivoire and Senegal.