Barrick sells noncore Nevada assets for $720m, on track to repay $3bn in debt
TORONTO (miningweekly.com) – TSX- and NYSE-listed Barrick Gold will sell some of its noncore Nevada assets for $720-million, taking the overall value of asset sales, joint ventures (JVs) and partnerships entered into since the start of the year to $3.2-billion.
The Toronto-based miner said the transactions placed it on track to meet its stated debt reduction target of $3-billion for 2015, which would represent a 23% reduction on the $13.1-billion debt at the start of the year.
Barrick would sell its 50% interest in the Round Mountain mine and 100% of the Bald Mountain mine to Kinross Gold for $610-million. The two companies had also agreed to form an exploration JV that would own a large land package on the Bald Mountain property.
Each company would own half of the JV and would fund exploration activities and advance new mine development opportunities on a 50:50 basis, with Kinross acting as the operator.
Barrick had also reached an agreement to sell its 70% interest in the Spring Valley project and its 100% interest in the Ruby Hill mine to subsidiaries of Waterton Precious Metals Fund II Cayman, for $110-million in cash.
The transactions were subject to customary closing conditions. The transaction with Waterton was expected to be completed by the end of 2015. The transaction with Kinross was expected to be completed in January 2016.
CIBC World Markets acted as financial adviser and Parsons Behle & Latimer and Davies Ward Phillips & Vineberg were acting as legal counsel to Barrick.
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