Mining News
Barrick Gold sells Senegal project to Teranga in $430 million deal
(Kitco News) - Barrick Gold (NYSE: GOLD, TSX: ABX) is well on its way to achieving its goal of raising $1.5 billion in cash as it sells its stake in another non-core asset.
On Tuesday, the gold-mining juggernaut announced that it was selling its 90% stake in the Massawa project in Senegal to Teranga Gold Corp (TSX: TGZ). for $430 million.
The company said that the stock-and-cash deal consists of $300 million in cash with $80 million worth of Teranga shares. The sale also includes a contingent payment of up to $50 million, which is based upon the average gold price for the three-year period immediately following closing.
“The agreement with Teranga, which will realize the full value of this asset and create a substantial new West African gold-mining company with significant African ownership, is the outcome of this process,” the company said in a press release.
The Massawa project has been in former Randgold’s portfolio for a decade, the company. The transaction is expected to close in the first quarter of 2020
“It is gratifying to continue the value-creating consolidation of assets in the gold-mining sector which started a year ago with the merger between Barrick and Randgold, followed shortly thereafter by the merger of the Nevada assets of Barrick and Newmont Goldcorp,” added Barrick CEO Mark Bristow.
“In the case of Massawa, Teranga has the appropriate infrastructure and processing facilities approximately 25 kilometers away, and combining the ore bodies and the geological prospectivity will add further benefits. This is a good example of an instance where assets we own might be better suited in combination with others,” he said.
In the past month, Barrick Gold has raised more than $1.1 billion in asset sales. In November, the gold producer 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.
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