Barrick completes sale of Cowal mine in Australia for $550m

23 July 2015 (Last Updated July 23rd, 2015 18:30)

Barrick Gold has completed the previously announced sale of its Cowal mine in New South Wales, Australia, to Evolution Mining for $550m.

Barrick Gold has completed the previously announced sale of its Cowal mine in New South Wales, Australia, to Evolution Mining for $550m.

The company will use the sale proceeds to reduce its debt by $3bn.

Barrick Gold co-president Kelvin Dushnisky said: "The sale of Cowal is consistent with the strategy we have outlined to create long-term value for our owners, and will make a significant contribution to our debt reduction target while further focusing the geographic footprint of our portfolio."

"The sale of Cowal is consistent with the strategy we have outlined to create long-term value for our owners, and will make a significant contribution to our debt reduction target while further focusing the geographic footprint of our portfolio."

Evolution Mining said that all conditions precedent to the transaction have been satisfied or waived.

Claimed to be one of Australia's attractive gold assets, the Cowal gold mine is a long-life operation and will improve the quality of Evolution's asset portfolio.

Evolution Mining executive chairman Jake Klein said: "The addition of Cowal to our asset portfolio is an exciting step forward for Evolution and provides us with a cornerstone asset of the highest quality.

"We welcome our new Cowal employees and look forward to building a long and successful relationship with the communities of the Bland, Lachlan and Forbes Shire."

In May, Evolution signed an agreement with Barrick (Australia Pacific) to acquire the mine through by the way of purchasing 100% of the shares in Barrick (Cowal).

Following the deal's conclusion, Evolution will have combined current annual production of 630,000oz to 700,000oz.

Cowal mine is located 40km north-east of West Wyalong and production at the mine is currently sourced from a single open-pit by using conventional drill and blast, load and haul mining methods.