Mining giant Barrick Gold has signed an agreement with Silver Standard Resources to divest its minority stake in the Marigold mine in Nevada, for $86m.
Marigold is said to be an efficient open pit operation that has been in production for more than two decades.
Barrick owns a 33.3% stake in Marigold, while the remaining 66.7% interest is owned by the operator, Goldcorp.
Originally a conventional milling operation, the mine has been converted into a large run-of-mine heap leach operation, producing 108,000oz of gold for Goldcorp in 2013.
Barrick’s sale of its stake in Marigold is part of the company’s optimisation programme to strengthen the overall quality of its portfolio and to maximise cashflow, in line with its capital allocation framework.
The sale process is a result of a single, coordinated divestiture process jointly executed with Goldcorp.
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According to Barrick, the proceeds have been adjusted to reflect Goldcorp’s position as manager and majority owner of the joint venture.
Barrick hopes to close the transaction in April of this year.
In January, Barrick Gold sold its stake in the Kanowna Belle and Kundana mine operations in Western Australia, to Northern Star Resource for $66.3m.
As part of the optimisation programme, Barrick has announced that it is divesting short-life, high-cost and non-core assets for a total consideration of about $850m over six months, to reduce production costs.
Barrick has its headquarters in Canada and operates 27 mines and numerous exploration projects across five continents.
Image: Barrick Gold to sell its stake in Marigold mine for $86m. Photo: courtesy of Bertrand Rieger / Corbis.