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Barrick Gold Looks to Sell All Or Part Of Its Peru Mine - Report

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© Barrick Gold

Barrick Gold Corp. (NYSE, TSX: ABX) is interested in potentially selling all or part of its Lagunas Norte mine in north-central Peru, Reuters cited sources as saying.

Toronto Dominion Bank is helping Barrick Gold with the transaction, which could be worth up to $1.4 billion, according to the report.

It is still unclear if the company wants to maintain control as operator after the sale.

In 2016, the Lagunas Norte mine produced 435,000 ounces of gold, with production costs of $529 per ounce. In 2017, the company estimates higher costs of $560-$620 per ounce, with total production set between 380,000-420,000 ounces of gold, according to the Barrick Gold’s website.

One of Reuters’ sources described the deliberations behind the possible sale as a “soft process” and not a top priority to the mining company.

Lagunas Norte is Barrick's flagship mine, which is located 4,000 meters above sea level in the Andes Mountains. At the end of 2016, the mine had 4.2 million ounces of proven and probable gold reserves.

Currently, the mine is at the end of its life under the first phase, which began in March 2005. The Toronto-based company is now exploring different second phase options, with production likely starting in 2023.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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