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Barrick Gold sells 50% stake in Aussie mine for $750 million

Kitco News

(Kitco News) - Barrick Gold has moved another step closer to its goal of raising $1.5 billion by selling non-core assets.

The mining giant announced Sunday that it sold its 50% joint-venture stake in the Kalgoorlie Consolidated Gold Mines (KCGM) in Western Australia to Saracen Mineral Holdings Limited for a total consideration of $750 million in cash.

“While this iconic gold mine has been a valuable contributor to Barrick over the years, the asset does not fit with our strategy of operating mines that we own.  The sale allows us to further focus our portfolio on core operations," Mark Bristow, Barrick Gold president and CEO, said in a press release.

The transaction is expected to be completed in the fourth quarter of 2019 and is subject to customary closing conditions. Saracen is an ASX200 listed gold company with two gold operations in the Kalgoorlie region of Western Australia.

Newmont Goldcorp, which operates the mine and owns the other 50% stake, said Monday that it looks forward to the new partnership.

“We congratulate Saracen on its agreement to purchase Barrick’s stake in KCGM and we look forward to partnering with them to continue delivering value at this world-class asset, safely and efficiently,” said Tom Palmer, Newmont Goldcorp president and CEO. “KCGM and the Golden Mile offer ongoing growth and value generating opportunities in Australia, which remains a core operating region for Newmont.”

The Kalgoorlie produced 636,000 ounces of gold in 2018.

The Australian gold mining industry has garnered renewed focus this past year as the sector has seen record gold production and all-time high gold prices against the Australian dollar.

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