Malbex Resources Enters Earn-in Agreement with Barrick Gold on Del Carmen Project in Argentina

Malbex Resources Inc. (TSXV:MBG) has entered into an agreement with Barrick Gold Corp. (TSX:ABX) regarding Malbex’s Del Carmen project in San Juan Province, Argentina. Under the agreement, Barrick will have the option to earn a 51-percent interest, and later a 75-percent interest, in the Del Carmen project based on the meeting of certain expenditure requirements.

Barrick has also agreed to subscribe for an aggregate of 14,285,714 common shares of Malbex for an aggregate subscription price of C$1,000,000.

As quoted in the press release:

The closing of the Private Placement and the earn-in arrangements is conditional on, among other things, Malbex causing the exploration agreement covering the Del Carmen Project to be transferred to a newly-formed entity jointly-owned by wholly-owned subsidiaries of Barrick and Malbex (the ‘Joint Venture Company’), the extension of such exploration agreement, the delivery of required work and environmental permits for the Del Carmen Project and the approval of the TSX Venture Exchange (‘TSX-V’). The transfer of the exploration agreement to the Joint Venture Company requires the prior approval of the Instituto Provincial de Exploraciones y Explotaciones Mineras (‘IPEEM’) of the San Juan Province, Argentina. Formal application to transfer the exploration agreement is expected to be made to IPEEM shortly.

Malbex’s CEO, Joe Hamilton, said:

Barrick brings a depth of technical and regional expertise that is impossible to match. While Malbex personnel were successful in identifying and categorizing significant epithermal mineralization at Rojo Grande, the recent Preliminary Economic Assessment indicated that the economics of the project could be significantly enhanced by extending gold mineralization beyond the current resources. Barrick is most familiar with these systems in the Andes and has operated successfully in the area for decades. We look forward to their participation and operating expertise as we continue to move the project towards feasibility.

Click here to read the Malbex Resources Inc. (TSXV:MBG) press release