Réunion Gold Settles Alliance Dispute with Barrick Gold
Réunion Gold and Barrick Gold officially settled their claim on Wednesday, December 20, reaching an amicable resolution. The resolution effectively ends all obligations between both entities, given that there’s no ownership remaining as per the alliance agreement.
Despite this resolution, Réunion Gold maintains its primary focus on developing and exploring the Oko West project in north-central Guyana, which Barrick had excluded from the alliance back in January 2020. Notably, Barrick holds no rights to reclaim involvement in the project.
Oko West, discovered through Réunion’s initial drilling program in 2020, boasts a pit-limited mineral resource estimate. It comprises 41.8 million tonnes grading 1.84 g/t gold, amounting to 2.5 million oz gold in the indicated category.
Additionally, it holds 27.1 million tonnes of inferred material grading 2.02 g/t gold, containing 1.8 million oz of metal.
Following this development, Reunion Gold’s shares rose by 1.1% in Toronto, holding a market capitalization of US$349.8 million.
The dispute stemmed from Réunion Gold’s notice to terminate the agreement in December 2022, which Barrick contested in the Ontario Superior Court of Justice.
Initially, the North West Expansion Project in Suriname remained the sole project under the alliance, as Barrick had chosen to exclude all others.
Before the conclusion of the deal, both parties agreed on a rehabilitation plan and budget for the North West expansion project. In the settlement, Réunion offered to relinquish its rights to the North West extension to Barrick.
Initially, Barrick’s claim sought declarations affirming its position, an order compelling Réunion’s compliance with the covenant, an injunction, and damages. However, with the settlement, these claims have been resolved.
