TORONTO – Barrick Gold Corp. and its Senegalese joint-venture partner have reached deal to sell their 90 per cent stake in the Massawa project in Senegal to Teranga Gold Corp. in an agreement worth up to US$430 million.

Under the deal, Barrick and its partner will receive US$300 million in cash and roughly 20.7 million in Teranga shares valued at US$3.85 per share for a total of US$79.8 million.

They will also be eligible for a contingent payment of up to US$50 million that is based on the average gold price for the three-year period following the closing of the deal.

Barrick says it will receive 92.5 per cent of the total purchase price, while its Senegalese partner will receive the rest for its minority interest.

Barrick will hold an 11.45 per cent stake in Teranga once the deal is complete.

The Toronto-based gold miner is providing US$25 million of the US$225 million syndicated debt financing secured by Teranga in connection with the transaction.

This report by The Canadian Press was first published Dec. 10, 2019.

Companies in this story: (TSX:ABX)