Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) today announced it has agreed to divest its minority interest in the Marigold mine in Nevada to Silver Standard Resources Inc. for total cash consideration of $86 million, subject to certain closing adjustments. The transaction is expected to close in April, 2014.
Barrick has a 33.3% interest in Marigold, with the remaining 66.7% interest owned by the operator, Goldcorp Inc. Barrick’s share of production in 2013 was about 55,000 ounces of gold at all-in sustaining costs (AISC) of about $1,545 per ounce(1). Barrick’s share of proven and probable reserves at December 31, 2012 was 1.6 million ounces(2), and its share of measured and indicated resources and inferred resources was 0.2 million ounces(2) and 0.4 million ounces(2), respectively.
The transaction is a result of a single, coordinated divestiture process jointly executed with Goldcorp. Proceeds to Barrick have been adjusted to reflect Goldcorp’s position as manager and majority owner of the joint venture.
The divestiture of Barrick’s minority interest in Marigold is part of Barrick’s ongoing portfolio optimization process to maximize free cash flow in line with the company’s disciplined capital allocation framework.
RBC Capital Markets is acting as financial advisor to Barrick with respect to the transaction.
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