The junior also announced a C$22 million financing by Augusta Investments, which will assume management of Bullfrog and appointed former Atlantic Gold boss Maryse Bélanger as president, CEO and director.

Bullfrog is issuing about 54.6 million units at a deemed price of 20c to Barrick, and Augusta will purchase 110 million units, giving the pair a 15.9% and 31.9% stake in the junior respectively on an undiluted basis.

Barrick CEO Mark Bristow said the deal was in line with its strategy of "bringing non-core assets to account".

"This is potentially another value-creating transaction which, once completed will consolidate assets to create an exciting new mining project, led by a skilled team and with strong financial backing," he said.

Along with Bélanger, Augusta is appointing Daniel Earle and Donald Taylor to Bullfrog's board and Barrick will add a nominee.

Bullfrog's David Beling will resign as president and CEO but remain a director to provide continuity and the junior's other three directors are resigning.

As part of the transaction, Bullfrog said its 2015 lease and option to purchase agreement with Barrick would be terminated and superseded, eliminating Barrick's back-in right.

It would grant Barrick a 2% NSR royalty on all minerals produced from the Barrick lands.

The Bullfrog project had produced about 2.3Moz of gold and 2.5Moz of silver between 1989-1999.

The project has a current measured and indicated 16 million tonne resource at 1.02g/t gold and 2.61g/t silver for 525,400 ounces and 1.34 million ounces respectively.

It has an inferred 2.85Mt at 1.2g/t gold for 110,700oz and 2.63g/t silver for 248,000oz.

The binding term sheet is subject to the completion of definitive agreements in 30 days.

Bullfrog Gold (OTCQB: BFGC), which added a CSE listing a year ago, closed up 9.97% to US15c, capitalising it at $24 million.

Barrick gained 1.98% in Toronto and closed at C$38.65, valuing it at $68.7 billion (US$52 billion).