Barrick Gold to sell 50 pct stake in Chile mine to Antofagasta

TORONTO-Barrick Gold Corp. on Thursday said it had agreed to sell 50% of its Zaldívar copper mine in Chile to Antofagasta PLC for $1 billion in cash, and to work with its new Chilean partner on maximizing the value of the mine. The Canada-based company said that, with the sale of the…

Antofagasta – which may be your owner of one’s Zaldivar copper mineral mine – will spend a full of $1 dollar, 005m in hard cash being made of US$980m with finishing, theme to traditional treatments, and five annually installments of US$5m each year, initiating in 2016. “Such synergies may include the ability to leverage Antofagasta’s extensive in-country procurement programs, contractor relationships and administrative efficiencies”, Barrick said. Antofagasta will act as the operator of the mine and will be subject to oversight and direction by the Board. “We are enthusiastic about partnering with Barrick at Zaldivar. There are many potential opportunities to benefit from Antofagasta’s experience as Barrick evaluates development projects in the future”, Barrick’s co-president Kelvin Dushnisky said.

The deal is expected to be completed in late 2015. “Antofagasta has an outstanding track record of building and operating mines in Chile, and we see this as the first step in an ongoing, collaborative partnership”. The company is well on its way to reaching its$3-billion debt reduction goal, having already sold $850-million in other assets.