Canadian major Barrick Gold and Chinese miner Shandong Gold have agreed to deepen their partnership, announcing on Monday that they would evaluate joint organic mining projects, as well as acquisition opportunities and potential asset sales.

The companies are partners in the Veladero mine, in Argentina, following Shandong’s acquisition of a 50% interest in the mine for $960-million in April 2017, when they first entered into a strategic cooperation agreement.

In terms of an “enhanced” strategic cooperation agreement, Barrick and Shandong would deepen their cooperation, the TSX- and NYSE-listed gold mining major announced in a media statement on Monday.

“Over the past year, we have been laying the foundation for a distinctive, enduring, and trust-based relationship with Shandong Gold,” said Barrick executive chairperson John Thornton.

“Over thousands of hours and many site visits, we have worked side by side to deepen our understanding of each other’s values, strategic priorities, and operating capabilities. This agreement will allow us to take our partnership to the next level, as we jointly explore opportunities to enhance long-term value for our respective owners, as well as our government and community partners.”

Barrick’s statement detailed three areas of collaboration, including exploring potential synergies with a project near the Veladero mine; stronger cooperation on investment opportunities; and the sharing of expertise between the two firms.

Barrick said that Shandong was completing an independent evaluation focused on the potential to develop a mining project at Lama, including an evaluation of potential synergies between the project and the nearby Veladero operation.

Following the completion of this study, the parties would consider additional studies and technical work to evaluate a number of development options, including: The construction of an openpit mine at Lama; the feasibility of using heap leach processing for low-grade and easy-to-leach gold ore; and the feasibility of adopting low-cyanide or other environment-friendly leaching reagents.

Building on a stated intent to evaluate joint investment in organic mining projects currently owned by Barrick or Shandong, Barrick said that it had agreed with Shandong that they would consider opportunities to work together on acquisition opportunities or potential asset sales, if both agreed it was in their collective best interests.

The companies have further agreed to choose one of Shandong Gold’s mines as a platform for learning and collaboration, with technical expertise and best practices relating to mining technology, information technology, information management, and digital innovation to be shared.

“Based on an identical culture and development concept, the joint operation of the Veladero mine in Argentina has obtained good effect,” said Shandong chairperson Chen Yumin.

“Shandong Gold and Barrick have maintained reciprocal visits of high frequency in respect of mining technology, corporate culture, community harmony, sustainable development and environmental protection, which has promoted cultural integration and management improvement. This signing of the strategic cooperation agreement represents a new level of our partnership.”