Barrick Gold to Sell Noncore Assets for $720 Million
November 12 2015 - 9:20AM
Dow Jones News
Barrick Gold Corp., the world's largest gold miner by output,
said Thursday it has reached two separate agreements to sell
noncore mining assets in Nevada for a total of $720 million.
The Toronto-based miner put the assets up for sale earlier this
year as part of its plan to cut debt by $3 billion this year.
The bulk of the sale proceeds, or $610 million, will come from
gold-mining peer Kinross Gold Corp., which will purchase Barrick's
Bald Mountain gold mine and its 50% stake in the Round Mountain
mine in Nevada. Kinross already owns the other 50% of Round
Mountain and is its operator.
The remaining assets, which include the Ruby Hill mine and
Barrick's 70% interest in the Spring Valley project, will be sold
to mining-focused private-equity firm Waterton Global Resource
Management for $110 million.
The assets are part of a group of six producing and
development-stage noncore assets, mostly in Nevada, that Barrick
has been looking to sell to help shore up its balance sheet.
Analysts had been expecting the assets to bring in around $500
million.
Barrick said it has now arranged asset sales, joint ventures and
partnerships worth $3.2 billion since the start of the year.
Barrick and Kinross also agreed to form an exploration joint
venture that will own a major land package on the Bald Mountain
property, with Kinross acting as operator.
Barrick said it expects the sale to Waterton to close by
year-end, while the sale to Kinross is expected to be completed by
mid-January.
Write to Judy McKinnon at judy.mckinnon@wsj.com
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(END) Dow Jones Newswires
November 12, 2015 09:05 ET (14:05 GMT)
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