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Unigold Inc. and Barrick Gold Corporation Enter into an Exploration Earn-In Agreement on the Neita Norte Concession, Dominican Republic
Toronto, Ontario--(Newsfile Corp. - July 14, 2023) - Unigold Inc. (TSXV: UGD) (OTCQB: UGDIF) (FSE...
About this update from Unigold Inc.
[{"type":"text","content":"Unigold Inc. and Barrick Gold Corporation Enter into an Exploration Earn-In Agreement on the Neita Norte Concession, Dominican RepublicToronto, Ontario--(Newsfile Corp. - July 14, 2023) - Unigold Inc. (TSXV: UGD) (OTCQB: UGDIF) (FSE: UGB1) (\"Unigold\" or the \"Company\") announces the execution of a binding term sheet (the \"Agreement\") with Barrick Gold Corporation (\"Barrick\") that sets the terms under which the Company will allow Barrick to earn into, and form a joint venture (\"JV\"), in respect of the Neita Norte Exploration Concession in the Dominican Republic. Joe Hamilton, Chairman and CEO of Unigold, commented, \"We welcome Barrick as a partner in the Neita Norte area. Barrick brings considerable technical and financial capability to the project. Barrick operates the world-class Pueblo Viejo mine in the Dominican Republic and has installed a significant amount of related infrastructure in the country, holding a commendable record as a good corporate citizen. The Agreement creates an opportunity for both companies to benefit from the development of this frontier area. Unigold will continue to be active in the area as we concentrate on the development of the Neita Sur concession and work to convert our significant resources into producing mines.\" Terms of the AgreementUnigold will grant Barrick the exclusive option to acquire a 60% undivided interest in the Neita Norte Exploration Concession by:incurring not less than US$2.5 million of expenditures in respect of the concession within the first three years; incurring a total of not less than US$8 million of expenditures in respect of the concession within the first six years and delivering a PEA;incurring a total of not less than US$12 million of expenditures in respect of the concession within the first eight years and delivering a PFS; and delivering a written notice to UGD electing to exercise the earn-in right.Following the earn-in of a 60% interest, Barrick will have the ability to elect to sole-fund and deliver a Feasibility Study by the end of year twelve which will allow Barrick to increase its ownership in the JV to 80%. The JV will be subject to standard dilution clauses which includes the criteria that should any partner own less than 15% of the JV they would be immediately diluted to a 2.5% NSR royalty. Barrick will be the manager and operator of the projec...