Barrick to buy Gold Bar in Nevada

Barrick Gold (ABX-N) is hoping to gain a foothold in Nevada’s Battle Mountain trend by purchasing the Gold Bar property from Atlas (AZ-N).

The major can acquire more than 90% of the property with an option to buy the remainder within two years.

A preliminary agreement between the companies calls for Barrick to pay US$1 million and purchase 1 million shares of Atlas at a price of US$1 per share.

Barrick must also spend US$3 million on the property over two years, and can take full possession for another US$15 million. Atlas will retain a 2% net smelter return royalty.

The junior can elect to participate in the development of the property through a 25% carried joint-venture interest.

The Gold Bar property covers more than 100 sq. miles in Eureka Cty., in the heart of the Battle Mountain trend. The property also includes a 3,200-ton-per-day carbon-in-leach mill.