StockMarketWire.com - Shanta Gold said it had agreed to acquire gold projects in Kenya from larger rival Barrick Gold for $14.5m in cash and shares, plus an ongoing royalty payment.

The deal would involve Shanta buying Barrick's subsidiary Acacia Exploration Kenya, which owned licences that include the high-grade West Kenya project.

The purchase cost included $7m of cash and $7.5m in Shanta Gold shares.

Barrick would also get a 2% life-of-mine net smelter return royalty across the current seven prospecting licences contained in the West Kenya project, payable on actual gold production in the future.

The deal would see Barrick become Shanta Gold's fifth-largest shareholder with a 6.4% stake.

The project required in-fill drilling and technical studies prior to a construction decision, Shanta Gold said.



Story provided by StockMarketWire.com