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Precipitate and Barrick Gold Corporation Agree to US$10.0M Earn-In Agreement on Precipitate's Pueblo Grande Project and US$1.0M Private Placement
Vancouver, British Columbia--(Newsfile Corp. - April 14, 2020) -   Precipitate Gold Cor...
About this update from Precipitate Gold Corp.
[{"type":"text","content":"Precipitate and Barrick Gold Corporation Agree to US$10.0M Earn-In Agreement on Precipitate's Pueblo Grande Project and US$1.0M Private PlacementVancouver, British Columbia--(Newsfile Corp. - April 14, 2020) -  Precipitate Gold Corp.  (TSXV: PRG) (\"Precipitate\" or the \"Company\") is pleased to announce that it has signed a definitive earn-in agreement (the \"Agreement\") with Barrick Gold Corporation (\"Barrick\") (NYSE: GOLD) (TSX: ABX) whereby Barrick has the right to earn a 70% interest in the Company's Pueblo Grande Project (the \"Project\") located immediately adjacent to Barrick's world-class Pueblo Viejo gold-silver mine in the Dominican Republic. To earn its interest, Barrick must incur a minimum US$10.0 million in exploration expenditures and deliver a qualifying Pre-feasibility Study prior to the sixth anniversary of the Agreement. In addition, Barrick has agreed to subscribe for the Canadian dollar equivalent of US$1.0 million of Precipitate's common shares in a private placement.In accordance with the terms of the Agreement, to earn a 70% interest in the Project, Barrick must (the \"Earn-in Conditions\"):- Incur a minimum of US$10.0 million in qualifying Work Expenditures prior to the sixth anniversary of the entering into of the Agreement as follows:US$2.0 million in aggregate before the second anniversary, with a US$1.0 million guaranteed minimum expenditure before the second anniversary;US$3.5 million in aggregate before the third anniversary;US$5.0 million in aggregate before the fourth anniversary;US$7.0 million in aggregate before the fifth anniversary; andUS$10.0 million in aggregate before the sixth anniversary; - Complete a minimum of 7,500 metres of drilling before the sixth anniversary of the entering into of the Agreement; and - Deliver a qualifying Pre-Feasibility Study before the sixth anniversary of the entering into of the Agreement Shortfalls in required Work Expenditures may be paid by Barrick to Precipitate as cash in lieu to satisfy the Work Expenditures' requirement. Barrick may at any time accelerate any or all of the Work Expenditures and excess Work Expenditures in any year shall apply against any future years' obligations. Jeffrey Wilson, President & CEO, stated, \"We are pleased to announce the agreement with Barrick whereby one of the largest gold mining companies in t...