Silver Standard takes Barrick’s stake

Vancouver — Silver Standard Resources (SSO-V) has inked a deal with Barrick Gold (ABX-T) to pick-up the major’s 20% stake in the Manantial Espejo silver-gold project in southern Argentina.

Under the terms of the agreement, Silver Standard will issue 400,000 shares to the major. Barrick will retain a 3% royalty on certain claims and agrees to defer a payment of US$5 per oz. gold and US6 per oz. silver, which was originally due upon completion of the final feasibility study. It will now be payable when commercial production begins.

Silver Standard has the right to acquire half of Black Hawk Mining’s (BHK-T) 80% interest in the project in return for paying US$1.5 million and spending US$4.5 million on exploration by 2002 (extendable to 2003 under certain conditions). The new deal will give Silver standard a 60% controlling interest.

Manantial Espejo was discovered in 1989 and has revealed a resource of 7.9 million tonnes grading 179 grams silver and 2.9 grams gold. The estimate, including 5,000 metres of infill drilling completed last year, is under review by consulting firm Pincock Allen & Holt.