10 Dec Teranga continues West African expansion with Massawa Gold acquisition in Senegal
TSX-Listed Teranga Gold has reached an agreement with Barrick Gold Corporation for the acquisition of its 90% interest in the Massawa Gold Project in Senegal, in a transaction worth up to US$430 million.
The deal consists of a $380 million upfront payment comprised of 20.72 million Teranga common shares with a value of $3.85 per share and a cash payment of approximately $300 million. A contingent payment of $50 million is also payable three years following closing.
West Africa-focused Teranga said Massawa is one of the highest-grade undeveloped open pit gold reserves in Africa and is located within trucking distance of its flagship Sabodala Gold Mine in Senegal.
“The proximity of the projects and the combination of Sabodala’s mill and Massawa’s high-grade ore are expected to scale Sabodala into a top tier asset,” said the company in a statement on Tuesday.
Teranga president and CEO Richard Young said: “The Massawa acquisition is transformational for Teranga and – by creating a top tier gold complex – the first in the country – an important milestone for the gold mining industry in Senegal.
“We anticipate that production from the Sabodala- Massawa Complex, together with our Wahgnion Gold Mine in Burkina Faso, will increase Teranga’s targeted consolidated annual gold production and reposition Teranga as the next multi-asset, low-cost, mid-tier gold producer in West Africa, one of the world’s premier gold mining regions.”