It not as bad as you think, Barrick spent $10 million in exploration on the Tabar/Tatau island, they have also injected $15 million into ALD by subscribing for 17.6 million shares at the time. Now ALD will be paying $5.5 million back to Barrick to have full control over the Tabar/Tatau island again.
Barrick Gold is worlds largest gold producer (7-8 million ounces/year) were looking for some serious hits when they started drilling the Tabar/Tatau island, unfortunately the results were not good enough for them, so they have likely agreed to sell off their interest back to ALD.
ALD should focus more on lowering cash cost at Simberi and lifting production target. Rather then waste all that money and effort drilling the Tabar/Tatau islands.
ALD Price at posting:
$1.62 Sentiment: None Disclosure: Held
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