Barrick financing funds Chesbar’s Venezuelan projects

A financing agreement with Barrick Gold (ABX-T) will enable Chesbar Resources (CBI-T) to explore its gold concessions in Venezuela.

Barrick will buy $2 million worth of Chesbar shares at $1.50 per share and retain the right to acquire a further $3 million worth of shares at the greater of the then market price or $1.50.

Chesbar will manage the program until $5 million has been spent, at which point Barrick can elect to fund 100% of all further work required to bring the project to the feasibility stage.

Upon completion of the study, Barrick will be entitled to a 60% interest in Chesbar’s interest in the properties. The major will also have the right to acquire an additional 5% interest in these properties for $5 million.

The junior’s land package covers 100 sq. km and three known gold zones.