Teranga completes Massawa- Sabodala combination

The Massawa gold project (pictured) is 20 km away from Teranga’s flagship Sabodala mine in Senegal. (Image from archives via Randgold Resources.)

Canada’s Teranga Gold (TSX:TGZ) has completed the recently announced transaction that would combine its Sabodala gold mine in Senegal with Barrick Gold’s (TSX:ABX; NYSE:GOLD) Massawa project.

The company now has a 90% stake in Massawa, which was held Barrick and its Senegalese partner.

“With the receipt of Massawa’s exploitation license and residual exploration license, as well as formal consent to integrate it into Teranga’s existing Senegalese gold operation, all of the closing conditions for the transaction are now satisfied,” Teranga said in the statement.

As part of the transaction, Barrick and its partner will receive an up-front payment valued at $380 million, comprised of 20,718,273 Teranga common shares ($80 million based on the Teranga share price at that time of $3.85 per share), a cash payment of approximately $300 million, and a contingent payment of up to $50 million.

“Sabodala’s combination with Massawa is expected to deliver significant synergies. Barrick will participate in the upside of the combined asset through the 11% interest it is acquiring in Teranga through this transaction,” said Barrick president and chief executive Mark Bristow in a separate media release.

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