Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Barrick Gold is the fourth major to head to the Yukon in the past 12 months

Yukon gold junior ATAC Resources will receive an $8.3 million investment from Barrick Gold as well as other investments.

Announced yesterday, Barrick is investing in ATAC’s Rackla Gold Property. ATAC says totals investments by Barrick could add up $63.3 million, which includes a private placement of $8.3 million and a two staged, $55 million exploration earn-in option to acquire up to 70% of Rackla.

The Yukon has been on a roll with the $520 million Goldcorp and Kaminak deal last spring and the US$39.5 million Newmont and Goldstrike deal last month. In December Agnico Eagle bought into the Yukon's White Gold district for $14.52 million.

ATAC’s President and CEO Graham Downs touted the deal.

“This agreement represents the alignment of both Barrick and ATAC’s shared values: principally to conduct excellence in exploration in an environmentally sustainable manner and to impart positive contributions to the communities we work within,” he said in a news release.

Ranj Pillai, Yukon's minister of Energy, Mines and Resources, told CBC that his territory now has all the major players working in the Yukon.

"It should be a very exciting exploration season," says Pillai

Here is ATAC's news release.

ATAC Resources announces property earn-in agreement with Barrick Gold
April 10, 2017 – Vancouver, BC – ATAC Resources Ltd. (TSX-V:ATC) (“ATAC”) is pleased to announce that it has entered into a number of transactions with Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) (“Barrick”) pursuant to which Barrick can acquire an interest in the central portion of ATAC’s Rackla Gold Property (the “Orion Project”) and make an $8.3 million investment in ATAC. Under the terms of the property earn-in agreement (the “Earn-in Agreement”) Barrick can acquire up to a 70% interest in the Orion Project.

The transactions consist of a potential total investment by Barrick of approximately $63.3 million, which includes a private placement of $8.3 million and a two staged, $55 million exploration earn-in option to acquire up to 70% of the Orion Project.

Highlights of the transactions are:

Stage one of the earn-in requires Barrick to incur exploration expenditures of $35 million over five years to acquire a 60% interest in the Orion Project;


Stage one expenditures include a $10 million guaranteed exploration commitment over the first three years;
Stage two of the earn-in requires Barrick to incur exploration expenditures of an additional $20 million to acquire an additional 10% interest in the Orion Project (for an aggregate 70%);


One or more senior members of the Barrick exploration team will be seconded to the Orion Project and provide technical assistance and expertise to ATAC;


A flow-through private placement under which ATAC will receive total proceeds of $8.3 million. Barrick will increase its shareholding in ATAC from approximately 9.2% to 19.9% and will have the right to maintain this interest in ATAC; and,


The flow-through placement proceeds will be used by ATAC to partially fund the previously announced $10 million, 2017 exploration program at the Osiris and Rau Projects which are not subject to the Barrick Earn-in Agreement.


“We view the Earn-in Agreement and related private placement with the world’s largest gold producer as a significant endorsement of the Rackla Gold Property, the ATAC exploration team and the Yukon as a region with world-class gold potential. The placement funds, together with access to Barrick’s expertise will help accelerate ATAC’s exploration and development work over the entire Rackla Gold Property,” stated ATAC’s President and CEO Graham Downs. “This agreement represents the alignment of both Barrick and ATAC’s shared values: principally to conduct excellence in exploration in an environmentally sustainable manner and to impart positive contributions to the communities we work within.”

To continue reading please click link http://www.mining.com/yukons-atac-resources-announces-63-3-million-financing-by-barrick-gold/