Opawica-Barrick deal revised

Once again, Barrick Gold (ABX-T) and Opawica Explorations (OPW-T) have revised their agreement on the Valle del Cura and Santa Cruz properties in the Argentine Andes.

The new deal sees Barrick take over Opawica’s Argentine subsidiary, Minera Rodeo, for US$350,000, and Opawica take a 1% net smelter return royalty on the properties.

The agreement replaces an April deal under which Barrick would have taken a private placement, giving it a 17% interest in Opawica for US$300,000, and earned a 70% interest on the property through a further US$125,000 work commitment. The April agreement replaced an earlier option deal signed in 1999.

The deal will close this month, provided regulators approve it. Barrick still has 1 million shares in Opawica and holds warrants to buy another 1 million; the warrants are exercisable at $1.25 per share until early March 2001.