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Gold major Barrick (TSX: ABX) is expanding its footprint in the Dominican Republic with an agreement to earn into and form a joint venture on the Neita Norte project held by Toronto-based Unigold (TSXV: UGD).
As per a binding term sheet announced Friday, Barrick will be granted an exclusive option to acquire a 60% interest in the Neita Norte exploration concession by spending at least $2.5 million within the first three years, $8 million within six years plus delivering a PEA, and $12 million within eight years, including a PFS.
Upon earning in a 60% interest, Barrick could then elect to sole-fund and deliver a feasibility study by the end of year 12 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%, they would be immediately diluted to a 2.5% NSR royalty. Barrick will be the manager and operator of the project.
The 10,903-hectare Neita Norte exploration concession was awarded to Unigold in March 2023. It comprises the northern section of the Neita area that the company has been exploring since 2002. Application to convert the 9,990-hectare southern section, Neita Sur, into an exploitation concession is still pending.
As the most active exploration company in the Dominican Republic, Unigold is developing the multi-million ounce Candelones gold deposits within its Neita exploration concessions located in the northwestern province of Dajabón.
In November 2022, the company delivered a feasibility study for the oxide portion of the Candelones deposit, envisioning a 5,000-tonne-per-day heap-leach operation with a mine life of 3.3 years. Average annual payable gold production is estimated at 31,400 oz.
Barrick currently operates the Pueblo Viejo mine located approximately 100 km northwest of the capital city Santo Domingo. A joint venture between Barrick (60%) and Newmont (40%), Pueblo Viejo represents the largest gold mine in Latin America.
