Unigold Inc. Provides Update on Exploration Earn-in Agreement with Barrick Gold Corporation on the Neita Norte Concession, Dominican Republic Exploration programs to commence immediately
Unigold Inc. Provides Update on Exploration
Earn-in Agreement with Barrick Gold
Corporation on the Neita Norte Concession,
Dominican Republic
Exploration programs to commence immediately
Toronto, Ontario--(Newsfile Corp. - April 26, 2024) - Unigold Inc. (TSXV: UGD) (OTCQB: UGDIF) (FSE:
UGB1) ("Unigold" or the "Company") announces the execution of a long-form agreement (the
"Agreement") with Barrick Gold Corporation ("Barrick") that details the terms under which Barrick can
earn into the Neita Norte Exploration Concession in the Dominican Republic and which includes a
shareholders agreement to govern the joint venture which will be formed upon successful completion of
earn-in requirements for exploration, development and mining in the area.
Work is anticipated to commence immediately.
Joe Hamilton, Chairman and CEO of Unigold commented, "We are excited for Barrick to initiate
exploration in the Neita Norte area.
We have always viewed the western portion of the Tireo Formation
as being the most prospective for finding large gold deposits in the Dominican Republic.
We are
delighted to partner with the foremost gold producer in the industry in order to further the exploration
efforts in this area.
Barrick brings considerable technical and financial capability to the project and has
one of the greatest depths of exploration expertise available in the industry.
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 Agreement
As announced on July 14, 2023, Unigold granted Barrick the exclusive option to acquire a 60%
undivided interest in the Neita Norte Exploration Concession by:
1
.
incurring not less than US$2.5 million of expenditures in respect of the concession within the first
three years;
2
.
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;
3
.
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
4
.
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 is 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 is the
manager and operator of the project.
The agreement is subject to standard representations and warranties from both parties.
About Neita Norte
The 10,903 Ha Neita Norte Exploration Concession was granted to Unigold on March 27, 2023.
The
concession is valid for three years and has two one-year extensions that may be granted.
Unigold has
held the Neita area under various Exploration Concessions since 2002.
In 2022, Unigold applied to split
the area into a northern section (Neita Norte) and a southern area (Neita Sur).
Unigold applied to convert
the Neita Sur area into an Exploitation Concession in early 2022.
That application is still pending final
approval from government authorities.
The Neita Norte Concession is dominated by the Tireo Formation which can be traced for 300 km along
a northwest-southeast strike and averages 35 km in width. It is comprised of volcano-sedimentary rocks
and lavas from an Upper Cretaceous age volcanic island arc that extends from northwestern Haiti into
the Cordillera Central of the Dominican Republic.
It is believed that the older rocks of the Tireo
Formation were thrust from north to south over the younger marine sediments of the southerly Trois
Rivieres - Peralta Formation.
The Tireo Formation is subdivided into Upper and Lower members. The older Lower Tireo occurs in the
eastern part of the concession area and is dominated by volcanic, volcaniclastics and pyroclastics of
predominantly andesitic composition.
Porphyry copper deposits are known to occur in the Lower Tireo
formation in Haiti and likely also occur within the exposures of these rocks in the Dominican Republic.
The main branch of the San Jose - Restauración Thrust Fault bisects the Concession almost in half
along a northwest trending corridor.
The younger Upper Tireo member dominates on the western side of
the thrust and is comprised largely of volcanic and volcanoclastics rocks of andesitic to rhyodacitic
composition.
The Upper Tireo Formation is known to host volcanogenic copper-gold massive sulphide
mineralization as well as epithermal gold-silver mineralization.
Unigold has identified areas within the Neita Norte concession that host surface expressions of
mineralization.
Some of these areas have seen limited follow-up drilling in the past ten years.
About Unigold Inc. - Discovering Gold in the Caribbean
Unigold is a Canadian based mineral exploration company traded on the TSX Venture Exchange under
the symbol UGD, the OTCQB exchange under the symbol UGDIF, and on the Frankfurt Stock Exchange
under the symbol UGB1.
The Company applied to split the "Neita Fase II" concession into an
Exploitation Concession and an Exploration Concession in late February 2022: "Neita Norte" and "Neita
Sur." The multi-million ounce Candelones gold deposits are within the 100% owned Neita Sur
concession located in Dajabón province, in the northwest part of the Dominican Republic.
The Company
delivered a feasibility study for the Oxide portion of the Candelones deposit in Q4 of 2022. The
application for the 9,990 Ha Neita Sur concession has moved smoothly through various permitting
stages and the Company expects that a decision will be given on the application in the second half of
2024.
The 10,903 Ha Neita Norte Exploration Concession was awarded to the Company in Q2 2023.
Unigold has been active in the Dominican Republic since 2002 and remains the most active exploration
Company in the country.
The two concessions together form the largest single exposure of the volcanic
rocks of the Cretaceous Tireo Formation.
This island arc terrain is host to Volcanogenic Massive
Sulphide deposits, Intermediate and High Sulphidation Epithermal Systems and Copper-gold porphyry
systems.
Unigold has identified over 20 areas within the concession areas that host surface expressions
of gold systems.
Unigold has been concentrating on the Candelones mineralization and is moving to
bring these deposits into production.
For further information please visit
http://www.unigoldinc.com
or contact:
Mr. Joseph Hamilton
Chairman & CEO
T. (416) 866-8157
Forward-Looking Statements
Certain statements contained in this document, including statements regarding events and financial
trends that may affect our future operating results, financial position and cash flows, may constitute
forward-looking statements within the meaning of the federal securities laws. The forward-looking
statements contained in this document are made as of the date hereof and we assume no obligation to
update the forward-looking statements. Where applicable, we claim the protection of the safe harbour for
forward-looking statements provided by the (United States) Private Securities Litigation Reform Act of
1995.
For more information, please visit
https://www.unigoldinc.com/profile/forward-looking-statement
.
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https://www.newsfilecorp.com/release/206813