Barrick 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.)

Barrick Gold (NYSE:GOLD, TSX:ABX) has completed the recently announced transaction of combining its Massawa gold project in Senegal with Teranga Gold's (TSX:TGZ) Sabodala gold mine.

Barrick and its Senegalese partner held a 90% interest in the Massawa project.

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 the media release.