Barrick Gold to sell half of an Argentina mine to Chinese miner

Barrick strikes deal with Chinese gold miner

TORONTO — Barrick Gold Corp. (TSX:ABX) says it is selling a 50 per cent stake in its Veladero mine in Argentina to Chinese mining company Shangdong Gold Group for $960 million as part of what it calls a “strategic co-operation agreement.”

The Toronto-based gold miner says as part of the deal, the two companies will also explore the joint development of its Pascua-Lama deposit, located about 10 kilometres from the Veladero site.

Barrick says a third element of the arrangement with Shangdong will see the companies look into investment opportunities on the El Indio Gold Belt along the Argentina-Chile border, which is already home to a cluster of gold mines and projects.

Barrick says the deal is expected to close at the end of the second quarter, pending regulatory and other conditions, including Shandong shareholder approval.

“Shandong is an ideal partner to help us unlock the untapped mineral wealth of the El Indio Belt over the long-term, while working with us to generate more value from the Veladero mine today,” said Barrick executive chairman John L. Thornton.

“We look forward to working in partnership with Shandong, sharing mining and development expertise, talent, and capital in ways that will create added value for our respective owners.”

“We are excited to enter Argentina’s dynamic mining industry in partnership with Barrick at Veladero,” added Shandong chairman Chen Yumin.

The Veladero mine, in Argentina’s San Juan province, had proven and probable gold reserves of 6.7 million ounces as of Dec. 31, 2016. Barrick says the mine is expected to produce 770,000-830,000 ounces of gold this year.

Shandong Gold, founded in 1996, has a current market cap of about $9.6 billion and produced about 1.2 million ounces of gold in 2016.

This arrangement comes about a week after Barrick and Vancouver-based Goldcorp (TSX:G) agreed to join forces to advance several mining projects clustered in northern Chile.

They announced on March 28 that Goldcorp will buy the 25 per cent stake held by Kinross Gold Corp. (TSX:K) in Cerro Casale and other assets in a deal that includes US$260 million cash.

Goldcorp also agreed to pay the first US$260 million of Barrick’s costs towards developing Cerro Casale as part of an agreement for an additional 25 per cent stake.

Goldcorp said it would also contribute to the nearby Caspiche project, which it will acquire by purchasing Exeter Resource Corp. (TSX:XRC) in a separate transaction valued at C$247 million. Half of the acquisition price of Caspiche will be credited toward the US$260 million in Barrick’s costs that Goldcorp has agreed to pay.

 

The Canadian Press

Just Posted

B.C. man convicted in fatal boat crash awaiting appeal date

Leon Reinbrecht maintains rights breached by delays

JoeAnna’s House fundraising campaign reaches $4.5 million

Offering ‘home away from home’ for families of KGH patients

Food truck options to expand in Salmon Arm

City council votes in new food truck regulations

New commercial development coming to council

Liquor outlet and 60-seat restaurant among uses proposed by applicant

Kelowna West byelection called for Feb. 14

Four candidate race to replace departed former B.C. premier Christy Clark

Solitary-confinement veto a chance to address mental health: advocate

B.C. Supreme Court made the landmark ruling Wednesday

KIJHL prospects shine in showcase game

Top players for Kootenay and Okanagan conferences put best skate forward.

Challenge issued to ‘Read for 15’

Regional district libraries to compete by asking patrons to read for 15 minutes on Jan. 26 and 27.

Winter storm coming to B.C. this weekend

The bets are on as to how much snow the province will actually get in the coming days

B.C. civil rights group files complaint about RCMP arrest of man who later died

Dale Culver, a 35-year-old Indigenous man was arrested in Prince George last July

Public asked to report bat sightings

White nose syndrome leads to bats flying in winter or death.

Lawyer says former B.C. government aide ‘barely guilty’ in ethnic vote scandal

Brian Bonney pleaded guilty to a breach of trust charge

Quite a few tears as homemade quilts distributed to residents of Ashcroft Reserve, Boston Flats affected by last summer’s fire

Quilters in B.C. and Alberta worked through the summer and fall to create more than 100 quilts.

Island Health: No need for alarm in wake of Victoria needle-prick incidents

Three incidents in a week prompts meeting between health authority, city service providers

Most Read