Bruchou counsels Barrick on acquisition of El Quevar silver mine

Argentinian law firm Bruchou has acted as local counsel to Canadian mining company Barrick Gold Corporation on its agreement with Golden Minerals Company for the exploration of El Quevar silver project, located in Salta Province. 

Barrick has entered into an agreement acquiring exclusive rights to explore el Quevar mining property and with an option to acquire a 70 per cent interest in Golden Minerals mine, and will purchase $1 million in Golden Minerals shares pursuant to a private placement transaction at $0.21 a share.

According to the agreement, in order to exercise the option, Barrick must spend $10 million on exploration; deliver an NI 43-101-compliant pre-feasibility study describing a potentially profitable operation with mineral resources of not less than two million gold equivalent ounces, and deliver a written notice of exercise to Golden Minerals within eight years.

Furthermore, Golden Minerals will form a new company, which will hold the El Quevar properties. The joint venture will be 70 per cent owned by Barrick and 30 per cent owned by Golden Minerals.

Bruchou’s partners Sergio Arbeleche (pictured), Sebastián Vedoya, Estanislao Olmos and Daniela Rey led the team, with associates Pablo Crimer and Mercedes Valin.

Golden Minerals was advised by Saravia Frias & Cornejo with a team led by partners Santiago Saravia Frías and Agustín Saravia Frías.