Barrick and Shandong announce $300m cross investment
Gold major Barrick Gold, which on Monday announced an $18.5-billion merger with Randgold Resources, has reached a cross investment agreement with China’s Shandong Gold, which executive chairperson John Thornton said further deepened the partnership between the two companies.
Under the agreement, Shandong will purchase up to $300-million of Barrick shares, and Barrick will invest an equivalent amount in shares of Shandong Gold Mining Co, a publicly listed company controlled by Shandong Gold.
Shares will be purchased in the open market.
Barrick and Shandong Gold are 50:50 joint venture partners at the Veladero mine, in Argentina, the first step in the partnership between the two companies. As a second step, Shandong Gold is currently carrying out an independent evaluation of Barrick’s Lama project, including an analysis of potential synergies between Lama and the nearby Veladero operation. Barrick and Shandong Gold have also created internal working groups that are sharing technical expertise and best practices focused on best-in-class mining practices and innovation.
“Barrick and Shandong both believe that by working in partnership, we can leverage our collective strengths to unlock long-term value for our respective shareholders, just as we are at Veladero today, with the potential to expand to Lama and other El Indio Belt projects in the future,” Thornton said.
The agreement builds on the enhanced strategic cooperation agreement entered into on July 9.
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