TORONTO (miningweekly.com) – The world's two biggest gold producers by market capitalisation, Barrick Gold and Goldcorp, now expect to have finalised a joint $1-billion project finance facility for their Pueblo Viejo project, in the Dominican Republic, by the end of the first quarter, Goldcorp CEO Chuck Jeannes said on Friday.

Barrick owns 60% of the $2,7-billion project and Goldcorp owns the balance.

The partners had said last year that the finance facility would be in place by the end of 2009, but the process is taking longer than expected, Jeannes said at an investment conference in Whistler, British Columbia.

Approximately $700-million of the $1-billion is with the organisations like the Inter-American Development Bank and Export Development Canada, which require more time to complete their internal processes.

“We think it's important to deal with those agencies because of the political risk coverage that they provide, and the commercial banks certainly like them being there, but it's taken longer than we expected.”

“But we just heard in the last couple of days that there have been some breakthroughs and we think that first quarter closing is very realistic,” he added.

The Pueblo Viejo mine remains on schedule to start-up in late 2011, and development is progressing well.

The mine is expected to produce almost one-million ounces of gold a year during its first five years of full production and has a forecast life-of-mine of more than 25 years.

The earthquake last week in Haiti did not affect the project, Jeannes said.

FRIEND OR FOE

They may be partners in developing and financing Pueblo Viejo, but the relationship between Barrick and Goldcorp took an interesting twist this month, when Barrick filed a claim in the Ontario superior court, seeking to halt Goldcorp's planned acquisition of a 70% stake in the El Morro gold/copper project, in Chile.

Barrick initially agreed to buy the stake last year from current owner Xstrata.

But Goldcorp structured a deal with New Gold, which owns the other 30% and has a right of first refusal on Xstrata's interest, in which Goldcorp will help fund New Gold's exercising of the right, and then acquire the stake from the smaller company.

Barrick is challenging the legality of Goldcorp and New Gold's plan.

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