Mr. Daniel Oh reports
BARRICK AND SHANDONG COMPLETE FORMATION OF JOINT VENTURE AT VELADERO MINE
Barrick Gold Corp. has completed the sale of a 50-per-cent interest in the Veladero mine in San Juan province, Argentina, to Shandong Gold Mining Co. Ltd. for $960-million. The formation of a 50/50 joint venture at Veladero is the first of three steps outlined in a strategic co-operation agreement signed by Barrick and Shandong Gold Group on April 6.
All amounts are expressed in U.S. dollars.
In keeping with the second step in the agreement, the two companies have also formed a working group to explore the joint development of the Pascua-Lama deposit. As a third step, Barrick and Shandong will evaluate additional investment opportunities on the highly prospective El Indio gold belt on the border of Argentina and Chile.
Proceeds from the sale of 50 per cent of Veladero will be used primarily to reduce debt.
CIBC World Markets Inc. acted as financial adviser to Barrick. Davies Ward Phillips & Vineberg LLP acted as legal counsel to Barrick.
We seek Safe Harbor.
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