DJ African Barrick Gold Buys Aviva Mining Kenya for 30M
Jul 23, 2012 (Dow Jones Commodities News via Comtex) --By Iain Packham
LONDON--Tanzania-focused gold miner African Barrick Gold PLC (ABG.LN) Monday said it has agreed to buy peer Aviva Mining Kenya Ltd. for up to 30 million in cash, gaining a foothold in Kenyan exploration assets.
Aviva's Kenyan assets are located in the southwest corner of Kenya, about 300 kilometers northwest of Nairobi, near the border of Uganda and on the shores of Lake Victoria, it said.
"This acquisition represents the first step in expanding our footprint outside of Tanzania and building our future growth pipeline," said Chief Executive Greg Hawkins. "The acquisition is an attractive entry into an under explored and highly prospective land package in a country bordering our existing operations."
The deal will give African Barrick stakes in joint venture exploration projects with Lonmin PLC (LMI.LN) and Advance Gold Corp. (AAX.V).
The miner will get a 51% interest in the Lonmin JV, which includes two 'Special Licenses' in West Kenya--SL123 Ndori and SL213 Siaya. African Barrick also has the right to earn up to a 75% stake in the JV by meeting certain conditions which include advancing the project through the pre-feasibility stage.
As part of the acquisition, African Barrick also gains the right to earn up to a 75% stake in the Advance JV, which includes three 'Special Licenses' in West Kenya--SL265 Bukura, SL266 Sigalagala and SL267 Rosterman. The company will earn the stake by meeting certain conditions which include making pre-defined exploration expenditures as set out in the Advance JV Agreement.
The assets have a gross asset value of 6.1 million, African Barrick said.
Shares closed Friday at 377.4 pence.
Write to Iain Packham at firstname.lastname@example.org
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