Through its subsidiary, Barrack will purchase City Resources’ 25.1% shareholding and City Resources Asia’s 24.6% shareholding in City Canada. These transactions now await final documentation and various regulatory and shareholder approvals.
The agreement also provides an option for Barrack to acquire a direct 50% interest in City Canada’s Graham Island Cinola gold project for $15 million, although this is still subject to an independent evaluation of the project and shareholder and regulatory approval. Barrack was also granted a right of first refusal over any sale of the project.
The Cinola project is an epithermal gold deposit with proven reserves of 25 million tons grading an average of 0.072 oz gold per ton.
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