Photo by: Reuters
JOHANNESBURG (miningweekly.com) – Barrick Gold has completed the sale of a 50% interest in the Veladero mine, in the San Juan province of Argentina, to Shandong Gold Mining for $960-million.
The formation of a 50:50 joint venture at Veladero is the first of three steps outlined in a strategic cooperation agreement signed by Barrick and Shandong on April 6.
The companies have also formed a working group to explore the joint development of Barrick’s Pascua-Lama deposit, on the border between Argentina and Chile.
As a third step, Barrick and Shandong will evaluate additional investment opportunities on the highly prospective El Indio gold belt on the border of Argentina and Chile.
Barrick will primarily use the proceeds from the sale of the Veladero stake to reduce debt.
The Veladero mine produced 544 000 oz of gold in 2016 and is expected to produce 630 000 oz to 730 000 oz of gold this year.