Tanzania-focused gold miner African Barrick Gold has agreed to buy Aviva Mining Kenya for US$30 million
The purchase will help African Barrick gain a foothold in the Kenyan exploration assets market and will provide the firm with stakes in joint venture (JV) exploration projects with Lonmin and Advance Gold Corp.
African Barrick chief executive Greg Hawkins said, “This acquisition represents the first step in expanding our footprint outside Tanzania and building our future growth prospects.
“The acquisition is an attractive entry into an under-explored and highly-prospective land package in a country bordering our existing operations,” he added.
The miner will attain a 51 per cent interest in the Lonmin JV, which includes two special licenses in western Kenya. African Barrick also has the right to earn up to a 75 per cent stake in the JV by meeting certain conditions, which include advancing the project through the pre-feasibility stage.
African Barrick will also gain a 75 per cent stake in the Advance JV, which includes three special licenses in West Kenya. The company will earn the stake by meeting certain conditions that include making pre-defined exploration expenditures as set out in the Advance JV agreement.
The assets have a gross asset value of $6.1 million, African Barrick said.
