LONDON: Shanta Gold, the East Africa-focused gold producer, has entered into a definitive agreement pursuant to which it will purchase 100% of the shares of Barrick’s subsidiary Acacia Exploration (Kenya) Ltd. from two subsidiaries of Barrick Gold Corporation.

Acacia’s primary asset is a 100% participating interest in licences held by Afriore which includes an existing high-grade resource. (West Kenya Project).

Fully financed purchase price totals US$7 million cash, US$7.5 million shares in Shanta Gold Limited issued to Barrick, and a two percent life of mine net smelter return (NSR) royalty over the Project.

Barrick will become Shanta Gold’s fifth largest shareholder with a 6.4% interest.

Benefits for Shanta Gold Shareholders:

·    Acquisition of one of the highest grade gold projects in Africa;

·    A major presence in a geologically rich and underexplored greenstone gold region;

·    Expands Shanta’s operating presence in East Africa with a diversified portfolio of exceptional assets delivering long term growth;

·    An established Centre of Excellence at the New Luika Gold Mine will advance the West Kenya Project and complement the project team based in Kisumu, Kenya;

·    Increases Shanta’s high-quality gold resource inventory to over 3 Moz contained gold with the prospect of future growth; and

·    Complementary language and legal systems between Tanzania and Kenya based on English law.