Deep sea mining puts $560 billion in land extraction at risk — report
Even in optimal scenarios, the activity would generate only $6.25 million in tax revenue for countries involved, says Planet Tracker.
South America-focused explorer Reunion Gold (TSXV: RGD) has settled a claim brought by Barrick Gold (TSX: ABX) (NYSE: GOLD) with respect to a strategic alliance agreement signed by the companies back in early 2019.
In December 2022, Reunion gave notice to terminate this agreement, which Barrick challenged in the Ontario Superior Court of Justice, alleging that the alliance should continue in perpetuity, and that unilateral termination is invalid.
At the time, the only project remaining under the alliance was the NW Extension project in Suriname, as Barrick had previously elected to exclude all other projects from the pact, Reunion stated in a Feb. 13 2023 news release.
Prior to that, the parties had agreed on a rehabilitation and demobilization plan and budget for the NW Extension project. In terminating the agreement, Reunion said it offered to assign its rights in the NW Extension to Barrick.
In its statement of claim, the gold mining giant said it is seeking relief in the form of, among other things, declarations affirming its position, orders compelling Reunion to perform its obligations under the alliance, related injunctive relief, and damages.
On Wednesday, Barrick’s claim was settled on what Reunion calls “a mutually acceptable basis”, and the parties now have no outstanding obligations to each other, since there are no properties under the alliance agreement.
Reunion said the company’s main focus remains on exploring and developing its 100%-owned Oko West project in north-central Guyana, which Barrick excluded from the alliance in January 2020 and has no back-in rights on the project.
Discovered by Reunion’s initial drill program in 2020, Oko West a pit-constrained mineral resource estimate of 41.8 million tonnes grading 1.84 g/t gold for 2.5 million oz. of contained gold in the indicated category. It also has 27.1 million tonnes of inferred material grading 2.02 g/t gold for 1.8 million oz. of contained metal.
Shares of Reunion Gold rose 1.1% by 12:30 p.m. in Toronto. The gold junior has a market capitalization of C$466.1 million ($349.8m).
