Barrick sells Lagunas Norte gold mine for $81 million plus closure liability
(Kitco News) - Barrick Gold (NYSE:GOLD)(TSX:ABX) today announced it has reached an agreement to sell its 100% interest in the Lagunas Norte mine in Peru to Boroo Pte Ltd (Singapore) for a total consideration of up to $81 million, plus the assumption by Boroo of Barrick’s closure liability relating to Lagunas Norte of $226 million backed by an existing $173 million bonding obligation.
In 2018, Barrick decided not to proceed with the treatment of refractory sulfide ore at Lagunas Norte and put the property on care and maintenance in 2019. The company reclassified 3.8 million ounces from mineral reserves to mineral resources and as at December 31, 2019, the total remaining gold resources at Lagunas Norte amounted to 4.3 million ounces.
President and CEO Mark Bristow said the sale was in line with Barrick's policy of selling non-core interests — a process which has already realized some $1.5 billion — in order to focus its portfolio on tier one assets. The proposed acquisition would benefit the mine’s stakeholders in Peru by giving Boroo the opportunity to extend its life by accessing satellite resources and adapting the infrastructure.
Barrick added that the Latin American region remains an important destination for the company, and Barrick will keep a team in Peru to continue to develop its portfolio of exploration assets and to pursue opportunities to find and operate world-class gold and or copper mines in that country.