- Troy Resources (TRY) enters an earn-in agreement with major gold miner, Barrick Gold, regarding its Karouni Project in Guyana
- Barrick may earn a 51 per cent interest in four of the project’s tenements by solely funding exploration and completing a pre-feasibility study
- Eventually, the companies may enter a joint venture (JV) through which Barrick can earn a further 29 per cent interest by solely funding the JV and arranging project financing
- Troy Managing Director Ken Nilsson is pleased with the partnership, saying the company has never had the funding to explore to the extent it would have liked
- Company shares are up 10.3 per cent to trade at 4.3 cents
Troy Resources (TRY) has entered an earn-in agreement with major gold miner, Barrick Gold.
Under this deal, Barrick has been granted an exclusive right to earn a 51 per cent interest in the Mirror, Mirror Southeast, Potaro and Kuribrong tenements within Troy’s Karouni Project in Guyana.
To exercise its earn-in right, Barrick will need to solely fund exploration work at the tenements and complete a pre-feasibility study. Once Barrick exercises the earn-in right, it will form a joint venture with Troy Resources.
Under the eventual joint venture, Barrick Gold will own a majority 51 per cent interest and the remaining 49 per cent will be owned by Troy.
Barrick Gold CEO Mark Bristow was pleased to be partnering with Troy Resources.
“We look forward to combining Barrick’s technical and financial resources with Troy’s established in country team and knowledge, to advance exploration over the project tenements with the aim to deliver new world class gold discoveries.”
Barrick will also have the option to sole fund the joint venture until a feasibility study is complete to earn an additional 19 per cent interest and take its 51 per cent stake in the joint venture up to 70 per cent.
Troy Resources Managing Director Ken Nilsson expressed he’s pleased to be partnering with Barrick Gold who’ll help take the Karouni Project’s potential to the next level.
“Ever since Troy acquired the Karouni Project in 2014, we’ve always maintained that our ground position was highly prospective for the discovery of significant gold mineralisation. Unfortunately, because of financial circumstances, we have never been in a position to explore to the extent we would have liked and which was rightfully warranted,” Mr Nilsson said.
If the companies decide to develop and construct a mine, Troy has the option to require Barrick to provide, or arrange for, Troy’s share of the project financing for a further 10 per cent ownership interest.
Alongside the earn-in, Barrick will subscribe for US$1.2 million (A$1.6 million) of Troy’s shares for development work at Karouni.
Company shares were up 10.3 per cent to trade at 4.3 cents at 12:16 pm AEST.