GFG and Barrick Sign Strategic Earn-In to Accelerate Exploration at the Pen Gold Project
Rhea-AI Summary
GFG Resources (OTCQB:GFGSF) signed a definitive earn-in agreement with Barrick Gold on GFG’s 100%-owned Pen Gold Project near Timmins, Ontario. Barrick can earn an initial 60% interest as operator by paying C$1.2 million in cash to GFG, funding C$17.68 million in qualifying exploration and project expenditures, and delivering an NI 43-101 technical report outlining at least 1.5 million ounces of gold or gold-equivalent resources within six years.
Barrick has a firm commitment to spend C$4.0 million, including a minimum of 5,000 metres of drilling in the first three years. After earning 60%, a joint venture is expected, with Barrick at 60% and GFG at 40%. Barrick may then increase its interest to 70% by solely funding a PEA and to 80% by solely funding a feasibility study. GFG highlights that the structure is non-dilutive to its treasury and enables it to focus capital on its wholly owned Goldarm Property while retaining meaningful exposure to Pen’s potential.
Positive
- C$17.68 million potential Barrick-funded exploration and project expenditures over six years
- Firm commitment of at least C$4.0 million in qualifying expenditures in first three years
- Non-dilutive cash payments up to C$1.2 million, including C$420,000 on signing
- GFG retains a 40% interest in Pen after initial 60% earn-in by Barrick
- At least 5,000 metres of committed diamond drilling by third anniversary
- Option for Barrick to fund PEA and feasibility study to potentially advance project to 80% earn-in
Negative
- GFG’s ownership in Pen may decline from 100% to as low as 20% if Barrick completes full 80% earn-in
- Earning of Barrick’s initial 60% interest depends on defining at least 1.5 million ounces of gold-equivalent resources
- Barrick controls operatorship during earn-in, reducing GFG’s direct operational control over Pen programs
- After the initial C$4.0 million commitment, Barrick may discontinue the earn-in and receive no interest, potentially limiting longer-term funding
AI-generated analysis. How Rhea-AI works. Not financial advice.
Barrick to invest up to
SASKATOON, Saskatchewan, Aug. 25, 2026 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV: GFG | OTCQB: GFGSF) (“GFG” or the “Company”) is pleased to announce that it has signed a definitive earn-in agreement (the “Agreement”) with Barrick Gold Inc. (“Barrick”) for a strategic earn-in transaction on GFG’s
The transaction provides Barrick the opportunity to earn an initial
Transaction Highlights:
- Significant partner-funded investment: Barrick may fund up to
$17.68 million in exploration and project expenditures to earn an initial60% interest in Pen. - Firm initial commitment: Barrick has committed to fund a minimum of
$4.0 million in qualifying expenditures within the first three years. - Near-term drilling: The initial commitment includes at least 5,000 metres of diamond drilling before the third anniversary of the Agreement.
- Non-dilutive cash to GFG: GFG will receive aggregate cash payments up to
$1.2 million over the six-year earn-in period, including$420,000 upon execution of the Agreement. - Meaningful retained ownership: Upon completion of the initial earn-in, GFG will retain a
40% participating interest in Pen. - Potential advancement through feasibility: Barrick may increase its ownership to
70% by funding a PEA and to80% by funding a feasibility study. - Focused capital allocation: The transaction provides a pathway to aggressively advance Pen while allowing GFG to direct its treasury toward its wholly owned Goldarm Property and broader discovery pipeline in the Timmins Gold District.
Brian Skanderbeg, President and CEO of GFG, commented: “This proposed partnership represents a significant value-creating opportunity for GFG shareholders and a strong endorsement of the scale and quality of the Pen Gold Project. The transaction provides for substantial partner-funded exploration, meaningful near-term drilling and a pathway to advance Pen through resource definition and potentially feasibility, while GFG retains significant exposure to future success.
“Pen is a large and highly prospective land package in the Timmins Gold District that requires the scale of investment contemplated under this transaction to fully evaluate its potential. Importantly, this structure will allow us to accelerate exploration at Pen without drawing on GFG’s treasury, while our team and capital remain focused on advancing Goldarm - an emerging, underexplored gold corridor located within the well-established Timmins mining camp, where active programs at Aljo, Montclerg and Nahanni are building a pipeline of high-priority targets and new discovery opportunities.”
Initial
Barrick may earn an initial
The cash payments include
If Barrick withdraws before satisfying the
Additional Earn-In Rights
Following completion of the initial
Barrick may elect, within 60 days of forming the joint venture, to increase its ownership to
If Barrick does not exercise either additional funding option, future programs would be funded by the parties in proportion to their respective ownership interests, subject to customary dilution provisions.
Operatorship and Exploration Programs
Barrick will act as operator during the initial earn-in period and will manage exploration programs at Pen. GFG will receive quarterly reports on exploration activities, budgets, plans and results, and will retain customary site-access and technical-review rights.
Following formation of the joint venture, the majority-interest holder will act as operator unless otherwise agreed.
Live Webinar
GFG will be hosting a live webinar to provide investors with an update on the Barrick partnership, its 2026 exploration strategy and upcoming catalysts.
- Date: August 26, 2026
- Time: 12:00 PM Eastern Time
- Registration Link: CLICK HERE
About the Pen Gold Project
The Pen Gold Project is located approximately 50 kilometres southwest of Timmins, Ontario, within a well-established mining corridor and strategically positioned between Discovery Mining Ltd.’s Borden Gold Mine and Pan American Silver Corp.’s Timmins West Mine. Covering approximately 475 square kilometres, Pen benefits from excellent existing infrastructure, with highway, rail and power corridors transecting the property and providing important logistical advantages for exploration and future development.
The Project covers a substantial package of Archean greenstone and hosts the interpreted western extension of the Porcupine-Destor structural corridor, a major regional structure associated with numerous world-class gold deposits throughout the Timmins Gold Camp.
All amounts in this news release are expressed in Canadian dollars.
Notice to Reader: The mineralization hosted on adjacent or regional properties and historical showings described herein is not necessarily indicative of the mineralization that may be identified on GFG’s subject property.
Figure 1: GFG Gold Projects in the Timmins Gold District
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Anders Carlson, P.Geo., Vice President, Exploration of GFG, a “qualified person” as defined under NI 43-101.
About GFG Resources Inc.
GFG is a North American precious metals exploration company focused on district scale gold projects in tier one mining jurisdictions. The Company operates three gold projects, each hosting large and highly prospective gold properties within the prolific gold district of Timmins, Ontario, Canada. The projects have similar geological settings that host most of the gold deposits found in the Timmins Gold Camp which have produced over 70 million ounces of gold.
For further information, please contact:
Brian Skanderbeg, President & CEO
or
Marc Lepage, Vice President, Business Development
Phone: (306) 931-0930
Email: info@gfgresources.com
Website: www.gfgresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This news release contains certain statements that may be deemed “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the proposed transaction; the timing and amount of cash payments and work expenditures; the completion of drilling and other exploration programs; the establishment of a mineral resource containing at least 1.5 million ounces of gold or gold equivalent; Barrick earning a
Forward-looking information is based on management’s reasonable assumptions, estimates, expectations, analyses and opinions as of the date of this news release. Such assumptions include, among other matters, that the proposed transaction will receive all required approvals; that exploration programs can be completed as planned; that sufficient financing, personnel, equipment, permits and services will be available; that required permits and community and Indigenous agreements can be obtained or maintained; and that exploration results will support continued advancement of the Project.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied. These risks include, but are not limited to, the risk that the proposed transaction may not receive required approvals or may not be completed; Barrick may elect to withdraw from the earn-in after satisfying its firm commitment; expenditure, drilling, resource and technical-study milestones may not be achieved; exploration results may not support the establishment of mineral resources; mineralization may not be economically recoverable; and the general risks associated with mineral exploration, permitting, commodity prices, financial markets and Indigenous and community relations.
There is no certainty that the proposed transaction will be completed or that any forward-looking information will prove to be accurate. Readers should not place undue reliance on forward-looking information. GFG undertakes no obligation to update forward-looking information except as required by applicable securities laws.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3ef61398-a88c-49dd-8eec-e14bd04df79c
