Barrick Gold Corporation (NYSE: GOLD)(TSX:ABX) today announced it has reached an agreement to sell its 50 percent interest in Kalgoorlie Consolidated Gold Mines ("KCGM") in Western Australia to Saracen Mineral Holdings Limited ("Saracen") for a total consideration of $750 million in cash.
"The sale of our non-operating interest in KCGM represents the first step in our plan to realize in excess of $1.5 billion from the disposal of non-core assets by the end of next year. While this iconic gold mine has been a valuable contributor to Barrick over the years, the asset does not fit with our strategy of operating mines that we own. The sale allows us to further focus our portfolio on core operations," says Mark Bristow, Barrick president and chief executive officer.
Bristow said Barrick was pleased to have achieved a successful outcome following a competitive sale process and was confident that Saracen would be an excellent partner at KCGM going forward. Proceeds from the sale will be used to further strengthen the balance sheet, invest in our future and support our commitment to deliver returns to our shareholders.
The transaction is expected to be completed in the fourth quarter of 2019 and is subject to customary closing conditions. Saracen is an ASX200 listed gold company with two gold operations in the Kalgoorlie region of Western Australia.
Credit Suisse Securities (Canada), Inc. is acting as financial adviser to Barrick. Davies Ward Phillips & Vineberg LLP and Herbert Smith Freehills LLP are acting as legal counsel to Barrick.