Barrick Gold Corp. (TSX:ABX,NYSE:ABX) announced that it has entered into a strategic cooperation agreement with Shandong Gold Co. Ltd., China’s leading underground mining company.
The first step in the partnership will see Shandong Gold Mining Co. Ltd. (SHA:600547), the listed company of Shandong Gold Co. Ltd., acquire a 50-percent stake in Barrick’s Argentina-based Veladero mine for $960 million.
As quoted in the press release:
As a second step, Barrick and Shandong will form a working group to explore the joint development of the Pascua-Lama deposit. As a third step, both companies will evaluate additional investment opportunities on the highly prospective El Indio Gold Belt on the border of Argentina and Chile, which hosts a cluster of world-class gold mines and projects including Veladero, Pascua-Lama, and Alturas.
John L. Thornton, executive chairman of Barrick, commented:
Our ambition is to make Barrick a leading twenty-first-century company in any industry in any jurisdiction, and by definition, that means creating a distinctive, enduring, and trust-based relationship with China and China’s best companies. This agreement moves us down that path. Shandong is an ideal partner to help us unlock the untapped mineral wealth of the El Indio Belt over the long-term, while working with us to generate more value from the Veladero mine today. We look forward to working in partnership with Shandong, sharing mining and development expertise, talent, and capital in ways that will create added value for our respective owners, and our government and community partners in San Juan province.
Click here to read the full Barrick Gold Corp. (TSX:ABX,NYSE:ABX) press release.
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