Barrick Reached Agreement to Sell One of Peru’s Largest Gold Mines

SEATTLE (Scrap Monster): Barrick Gold announced that it has reached an agreement with Singapore-based Boroo Pte Ltd towards sale of its 100% interest in the Lagunas Norte gold mine in Peru. The sale is for a total consideration of up to US$81 million, plus the assumption of Barrick's closure liability of US$226 million.

In accordance with the terms of the deal, the buyer is liable to make upfront payment of $20 million. An additional payment of $10 million will be paid on the first anniversary of closing of the deal and $20 million on the second anniversary. Also payable is a 2% net smelter return royalty on gold and silver produced through the refractory sulphide ore project until production touches 1 million ounces. The buyer will also have to make a contingent payment of up to $15 million based on the average gold price per ounce for the two-year period after closing.

Mark Bristow, CEO, Barrick Gold noted that the announced sale of the Peruvian gold mine is in line with the company’s strategic decision to offload non-core interests so as to concentrate more on its best assets. Pursuant to this, the company has already sold $1.5 billion worth of non-core assets since the spring of 2019.

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