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September 26, 2018updated 01 Nov 2021 4:47am

Barrick and Shandong Gold sign mutual investment deal

Canadian exploration and development company Barrick Gold has signed a mutual investment agreement with Chinese mining company Shandong Gold Group.

Canadian exploration and development company Barrick Gold has signed a mutual investment agreement with Chinese mining company Shandong Gold Group.

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The new agreement is set to further bolster the relationship between the parties.

As part of the agreement, Shandong Gold will purchase Barrick shares worth as much as $300m, and in return Barrick will invest an equivalent amount in shares of Shandong Gold’s publicly listed subsidiary Shandong Gold Mining.

Barrick Gold executive chairman John Thornton said: “Barrick and Shandong both believe that by working in partnership, we can leverage our collective strengths to unlock long-term value for our respective shareholders, just as we are at Veladero today, with the potential to expand to Lama and other El Indio Belt projects in the future.”

The companies are already 50-50 joint venture partners in the Veladero mine in Argentina. Shandong acquired a 50% interest in the mine from Barrick last year.

As part of the partnership, Shandong is undertaking an independent evaluation of Barrick’s Lama project, which is located on the border between Argentina and Chile.

Shandong will carry out an analysis of potential synergies between Lama and the nearby Veladero operation.

Shandong Gold Group chairman Yumin Chen said: “Building on the enhanced strategic cooperation agreement entered on 9 July 2018, Shandong Gold Group is pleased to announce further steps to deepen the strategic partnership with Barrick Gold Corporation, through this mutual investment and cross shareholding initiative, to capitalise on respective strengths and realise long-term synergies and to unlock long-term value for the respective shareholders.

“We believe additional long-term strategic value can be created by working closely together.”

“Building on the excellent partnership at Veladero today, we believe additional long-term strategic value can be created by working closely together on other projects including Lama and El Indio Belt projects in the future.”

The parties have also set up internal working groups to share technical expertise and best practices regarding mining and innovation.

In a separate deal, Barrick agreed to merge with Randgold Resources to create the world’s biggest gold miner, with a market capitalisation of about $18bn.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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