Malbex Resources Inc. provided an update today on its previously announced agreement with Barrick Gold Corporation relating to Malbex's Del Carmen project in San Juan Province, Argentina whereby Barrick will have the option to earn in to a 51%, and then a 75%, interest in the Del Carmen Project based on meeting certain expenditure requirements.
In conjunction with the earn-in arrangements, Barrick has agreed to subscribe for an aggregate of 14,285,714 common shares of Malbex for an aggregate subscription price of C$1,000,000.
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 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. Malbex and Barrick are continuing to work towards satisfying all the conditions necessary to close the Private Placement and the earn-in arrangements. All of the terms and conditions of the Private Placement and the earn-in arrangements remain the same since they were announced on April 22, 2014.