Barrick Completes Massawa Transaction
PRESS RELEASE
ALL AMOUNTS EXPRESSED IN U.S. DOLLARS NYSE : GOLD TSX : ABX
Barrick Completes Massawa Transaction
TORONTO — March 4, 2020 — In line with its strategy of focusing on Tier One assets, Barrick Gold
Corporation (NYSE:GOLD)(TSX:ABX) has completed the recently announced transaction of combining its
Massawa gold project in Senegal with Teranga Gold Corporation’s Sabodala gold mine. Barrick and its
Senegalese partner held a 90% interest in the Massawa project.
As part of the transaction, Barrick and its partner will receive an up-front payment valued at $380 million at
the time of announcement, comprised of 20,718,273 Teranga common shares (with a value at the time of
announcement of approximately $80 million bas ed on the Teranga share price at that time of $3.85 per
share), a cash payment of approximately $300 million, and a contingent payment of up to $50 million which
is based upon the average gold price for the three -year period immediately following closing ( “three year
average gold price”). The contingent payment, which is payable three years following closing, is: $25 million
if the three year average gold price is greater than $1,450 and less than $1,500 per ounce; $35 million if
the three year average gold price is greater than $1,500 and less than $1,600 per ounce; and $50 million if
the three year average gold price exceeds $1,600 per ounce.
Barrick president and chief executive Mark Bristow said Massawa was one of the largest unexploited gold
deposits in West Africa and its legacy company Randgold Resources had developed this over a period of
years to the point where its value could now be optimally realized for the benefit of all its stakeholders which
includes the Senegal Government.
“Teranga is be st placed to achieve this as it already owns the nearby Sabodala mine and Sabodala’s
combination with Massawa is expected to deliver significant synergies. Barrick will participate in the upside
of the combined asset through the 11% interest it is acquiring in Teranga through this transaction,” he said.
Enquiries:
Mark Bristow
President and CEO
+1 647 205 7694
+44 788 071 1386
Kevin Thomson
Senior executive vice-president,
strategic matters
+1 416 307 5150
Kathy du Plessis
Investor and media relations
+44 20 7557 7738
Email: [email protected]
Website: www.barrick.com
BARRICK GOLD CORPORATION PRESS RELEASE
Cautionary Statement on Forward-Looking Information
Certain information contained in this press release, including any information as to Barrick’s strategy, plans,
or future financial or operating performance, constitutes “forward-looking statements”. All statements, other
than statements of historical fact, are forward-looking statements. The word “will”, and similar expressions
identify forward-looking statements. In particular, this press release contains forward -looking statements
including, without limitation, with respect to: the anticipated benefits from the combination of the Massawa
project with Teranga’s existing assets and the creation of a new West African gold mining company with
significant African ownership and the eventual payment of the conting ent consideration following the third
anniversary of closing.
Forward-looking statements are necessarily based upon a number of estimates and assumptions; including
material estimates and assumptions related to the factors set forth below that, while considered reasonable
by Barrick as at the date of this press release in light of management’s experience and perception of current
conditions and expected developments, are inherently subject to significant business, economic, and
competitive uncertainties an d contingencies. Known and unknown factors could cause actual results to
differ materially from those projected in the forward-looking statements, and undue reliance should not be
placed on such statements and information. Such factors include, but are not limited to: fluctuations in the
spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas,
and electricity); the speculative nature of mineral exploration and development; changes in national and
local government legislation, taxation, controls, or regulations and/or changes in the administration of laws,
policies, and practices, expropriation or nationalization of property and political or economic developments
in Canada, the United States, Jersey or Se negal; lack of certainty with respect to foreign legal systems,
corruption and other factors that are inconsistent with the rule of law; risk of loss due to acts of war,
terrorism, sabotage and civil disturbances; timing of receipt of, or failure to comply with, necessary permits
and approvals, including Barrick’s ability to successfully obtain the Massawa mine license from the
Government of Senegal; failure to comply with environmental and health and safety laws and regulations;
litigation and legal and ad ministrative proceedings; damage to Barrick’s reputation due to the actual or
perceived occurrence of any number of events, including negative publicity with respect to the Barrick’s
handling of environmental matters or dealings with community groups, whet her true or not; contests over
title to properties, particularly title to undeveloped properties, or over access to water, power and other
required infrastructure; employee relations including loss of key employees; risks associated with working
with partners in jointly controlled assets; risks relating to Teranga’s ability to realize capital and operating
synergies with respect to the Sabodala gold mine and the Massawa project; and availability and increased
costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the
business of mineral exploration, development, and mining, including environmental hazards, industrial
accidents, unusual or unexpected formations, pressures, cave -ins, flooding, and gold bullion, copper
cathode, or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain
insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results
to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf
of, us. Readers are cautioned that forward -looking statements are not guarantees of future performance.
All of the forward -looking statements made in this press release are qualified by these cautionary
statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with
the SEC and Canadian provincial securities regulatory authorities for a more detailed discussi on of some
of the factors underlying forward-looking statements, and the risks that may affect Barrick’s ability to achieve
the expectations set forth in the forward-looking statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as
a result of new information, future events or otherwise, except as required by applicable law.