Barrick Gold has signed agreements to sell its non-core assets in Nevada, US, for $720m, as part of its plan to reduce debt by $3bn this year.
Under the agreement terms, Kinross Gold will purchase Barrick’s 50% interest in the Round Mountain mine and 100% of the Bald Mountain mine for $610m.
An exploration joint venture formed by these two companies will own a major portion of land on the Bald Mountain property.
The JV will be equally owned by the companies, which plan to fund exploration activities and advance new mine development opportunities on a 50-50 basis, with Kinross serving as the operator.
Barrick has also signed agreement with subsidiaries of Waterton Precious Metals Fund II Cayman to sell its 70% interest in the Spring Valley project and 100% interest in the Ruby Hill mine for $110m.
Since the beginning of the year, the company has announced asset sales, joint ventures and partnerships worth $3.2bn.
Barrick Gold president Kelvin Dushnisky said: "The sale of these assets is consistent with our strategy to create long-term value for our shareholders by strengthening the balance sheet and further focussing our portfolio on core mines that will drive free cash flow growth.
"As we move into 2016 and beyond, we will continue to take steps to strengthen our balance sheet, but we will balance debt repayments with investments to drive future growth in free cash flow and EBITDA."
According to the company, both transactions are subject to customary closing conditions.
The transaction with Waterton is expected to be completed by the year-end, while the Kinross deal is slated for completion by mid-January 2016.
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.