Revival Gold exercises option to acquire Barrick’s Mercur gold project stake

Revival Gold has exercised its enactment to get 100% of Barrick Mining's involvement successful the Mercur golden project, a large measurement guardant that could alteration the restart of golden accumulation astatine the Utah-based tract successful US.

The enactment to get Barrick's involvement was granted nether a mineral lease and option-to-purchase statement signed successful May 2021.

The statement covers 996 hectares (ha) of mineral interests, expanding the wide Mercur task country to astir 7,200ha.

Revival Gold has completed a preliminary economical appraisal (PEA) for the Mercur golden task successful mid-2025.

The institution besides carried retired a 13,000 metres drill run this twelvemonth to enactment a planned pre-feasibility survey (PFS) successful 2026 and to commence the authorities excavation permitting process successful Utah.

The PEA forecasts mean yearly accumulation of 95,600 ounces (oz) of golden implicit a excavation beingness of 10 years.

It besides estimates an after-tax nett contiguous worth (NPV) of $294m astatine 5% discount complaint and a golden terms of $2,175/oz.

The permitting process is expected to instrumentality astir 2 years.

Revival Gold president & CEO Hugh Agro said: “Barrick produced 1.4 cardinal ounces of golden astatine Mercur, but ne'er controlled the contiguous Homestake claims and westbound Mercur onshore position. This enactment workout completes the consolidation of a ample Carlin-style golden strategy – a rarity extracurricular the Nevada golden majors – and comes with paved roadworthy access, an energised powerline to the tract and extended method information. Mercur is our apical precedence to determination to production.

“Utah is simply a favourable jurisdiction, and we expect a comparatively abbreviated timeline to re-permit Mercur for mining.”

To workout the option, Revival Gold has to spent astatine slightest C$6m ($4.35m) connected exploration by 2 January 2026, a information that has already been met.

As a portion the enactment agreement, Revival Gold volition execute a rank involvement acquisition statement (MIPA) with Barrick, done which it volition get Barrick Resources (USA) oregon its successor company.

Compensation to Barrick volition see $5m astatine enactment closing, and $5m connected each of the first, second, and 3rd anniversaries of the commencement of commercialized production.

Payments whitethorn beryllium made successful currency or, astatine Barrick’s discretion, successful Revival Gold communal shares.

Agro added: “Mercur’s PEA economics person the imaginable to thrust transformational worth for Revival Gold’s shareholders. Barrick has operated to precocious standards of biology and assemblage stewardship astatine Mercur and Revival Gold is committed to upholding the aforesaid precocious standards.”

Additionally, connected closing, Revival Gold volition supply Barrick a 2% nett smelter instrumentality (NSR) royalty connected the mineral interests included successful the agreement, and a 1% NSR royalty connected each mineral properties wrong 1km of the covered mining claims successful which Revival Gold has an interest.