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Barrick Gold Corp
Symbol ABX
Shares Issued 1,164,669,708
Close 2015-05-26 C$ 14.56
Market Cap C$ 16,957,590,948
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Globe says Barrick seals "strategic" Chinese agreement

2015-05-27 07:50 ET - In the News

The Globe and Mail reports in its Wednesday edition Barrick Gold is joining with China's Zijin Mining Group to develop projects in a strategic partnership that chairman John Thornton has long been seeking. The Globe's Rachelle Younglai writes their first deal will see the state-owned Chinese miner pay Barrick $298-million (U.S.) for a 50-per-cent share of Barrick's Papua New Guinea gold business. Since Mr. Thornton joined Barrick as a director in 2012, he has touted his China connections. This union will "provide significant opportunities to work together," Mr. Thornton said in a statement. Barrick did not elaborate on those "opportunities" and its agreement with Zijin is non-exclusive. That means Barrick could tap another company or work solo on some of its other projects, such as its stalled Pascua Lama gold mine in the Andes and its new Goldrush gold property in Nevada. Nevertheless, the deal with Zijin is a milestone for Mr. Thornton, who has been laying the groundwork for a union with the Chinese. Haywood Securities said Zijin could help Barrick by buying its African gold operations, or Lumwana, the troubled copper mine in Zambia that Barrick purchased for about $7-billion (U.S.).

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