Barrick Gold completes stake sale in Round Mountain and Bald Mountain mines in US

11 January 2016 (Last Updated January 11th, 2016 18:30)

Barrick Gold has completed the $610m sale of its 50% stake in the Round Mountain mine and 100% of the Bald Mountain mine in Nevada, US, to Kinross Gold.

Bald Mountain

Barrick Gold has completed the $610m sale of its 50% stake in the Round Mountain mine and 100% of the Bald Mountain mine in Nevada, US, to Kinross Gold.

Barrick Gold president Kelvin Dushnisky said: "In line with our strategy, we announced asset sales, joint ventures and partnerships worth $3.2bn in 2015, allowing us to achieve our debt reduction target of $3bn for the year, while improving our liquidity and further focusing the company's portfolio on core mines that drive free cash-flow.

"We are also excited to form a new exploration partnership with Kinross that will allow us to maintain significant exposure to a highly prospective land package at Bald Mountain."

The sale is part of agreements signed by Barrick Gold in November 2015 to offload its non-core assets in US for $720m to cut debt by $3bn this year.

"The acquisition expands our existing portfolio in Nevada, one of the best mining jurisdictions in the world, and provides clear upside potential."

Kinross Gold president and CEO Paul Rollinson said: "The acquisition expands our existing portfolio in Nevada, one of the best mining jurisdictions in the world, and provides clear upside potential."

The Bald Mountain property covers a 600km² prospective land package along the southern extension of the Carlin trend.

The companies have also completed the formation of an exploration joint venture (JV) covering a large land package on the Bald Mountain property.

Under the 50-50 JV, Kinross will leverage Barrick Gold's area expertise to explore and develop 40% of the land package outside the existing core mining area.

The latest development follows the company's sale of its 70% interest in the Spring Valley project and its 100% interest in the Ruby Hill mine to Waterton Precious Metals Fund II Cayman subsidiaries for $110m in December 2015.


Image: Barrick signed agreements to sell a number of non-core assets in Nevada, including the Bald Mountain mine. Photo: courtesy of Barrick Gold Corporation.