Barrick Gold Corporation the world’s largest producer of the metal, agreed to sell a 50 percent interest in the Zaldívar copper mine in Chile to Antofagasta Plc for a total consideration of $1.005 billion in cash, forming a new partnership with one of the world’s leading copper companies.
Antofagasta will pay Barrick $980 million in cash upon closing and $25 million in additional cash payments over the next five years for a 50 percent stake in the Zaldívar mine. The transaction is expected to be completed in late 2015 and is subject to customary closing conditions.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
“The sale of 50 percent of Zaldívar is consistent with our strategy to create long-term value for our shareholders. By selling a stake in this non-core asset, we strengthen our balance sheet while maintaining significant exposure to a strong cash-generating operation, ” said Kelvin Dushnisky, Co-President of Barrick. “Following a highly competitive auction process, we are pleased to reach an agreement with the ideal partner for Zaldívar. Antofagasta has an outstanding track record of building and operating mines in Chile, and we see this as the first step in an ongoing, collaborative partnership. There are many potential opportunities to benefit from Antofagasta’s experience as Barrick evaluates development projects in the future.”
Diego Hernandez, CEO of Antofagasta said. “We have consistently been impressed with the workforce at Zaldívar, and look forward to partnering with them. We also look forward to exploring other opportunities to collaborate with Barrick in the future.”
Zaldivar, in northern Chile, produced 222 million pounds of copper in 2014, according to Barrick’s website. Production costs last year were US$1.65 a pound and they are increasing as head grades fall
Barrick Gold
The world’s largest gold mining company, Barrick Gold Corp.,
has sold its entire stake in Australia’s Cowal gold mine to local
gold producer Evolution Mining Ltd. for an estimated $550 million.
This latest More…
Legendary investor George Soros owns several gold and
precious metal stocks, such as Goldcorp, Silver Wheaton and
Yamana Gold, but he sold 90% of his stake in Barrick Gold–not
all gold miners are created More…
– – Barrick Gold issued its 2014 first quarter results today, which
are sobering for the heavily indebted gold miner. With the substantial
drop in gold prices, of 28% in 2013 alone, and continuing into 2014, More…
Well, you can’t really bully your way into a friendly merger; and this
one derailed for some interesting reasons you will see at the end of this
article. Today Peter Munk’s Barrick Gold Corp, of More…
It is now not at all official; it seems the world’s two top gold mining
giants, Barrick Gold and Newmont Mining, are said to have been having
talks about talks on the subject of a possible merger More…
