Barrick Gold Announces Sale of Majority Stake in Chinese Gold Miner

SEATTLE (Scrap Monster): Barrick Gold Corporation announced that it has sold majority stake in Shandong Gold Mining. The company now holds only a minor stake in the Chinese gold miner.

According to company press release, a partial stake comprising of 79,268,800 shares of Shandong Gold Mining Co., Ltd., has been sold for a sum of approximately $210 million. The selling price of the shares averaged at HK$20.50 per share. The company has taken full advantage of the recent rise in share price. It must be noted that Barrick had purchased the shares at a cost basis of HK$10.50 per share in Q4 2018. The company now holds only 10,250,000 shares, accounting for a total stake of around 2.05%.

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Meantime, Barrick Gold reaffirmed its commitment to the strong long-term partnership between the companies.

Both the companies had formed a partnership to operate the Veladero mine in Argentina, by Barrick selling 50% stake in the mine to Shandong for a sum of $960 million way back in 2017. Further to that, they had decided to extend the co-operation beyond the project and go ahead with key acquisitions in other geographical regions as well.

The shares were sold through an accelerated book building process. Morgan Stanley acted as the placing agent in the transaction.