Barrick Gold Corporation has completed the sale of a 50% interest in the Veladero mine in San Juan province, Argentina to Shandong Gold Mining Co Ltd for US$960 million. Formation of a 50/50 joint venture is the first of three steps outlined in a strategic cooperation agreement between Barrick and Shandong.
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.
Barrick says proceeds from the sale of 50% of Veladero will be used primarily to reduce debt.
CIBC World Markets Inc acted as financial advisor to Barrick while Davies Ward Phillips & Vineberg LLP acted as legal counsel to Barrick.
Headquartered in Jinan, Shandong province, China, Shandong Gold Group was founded in 1996 and today has 23,000 employees. Shandong Gold Mining Co Ltd was listed on the Shanghai Stock Exchange in 2003.
Shandong Gold Group produced approximately 1.2 million ounces of gold in 2016 and is the only mining company in China named as a National Environmentally Friendly Enterprise by the Chinese government.