Barrick Gold Corporation has completed the divestiture of its 50 per cent interest in Kalgoorlie Consolidated Gold Mines (KCGM) in Western Australia to Saracen Mineral Holdings Limited for a total cash consideration of US$750 million.
Mark Bristow, Barrick president and chief executive officer said the sale of the non-operating interest in KCGM represents the first step in Barrick’s plan to realise in excess of $1.5 billion from the disposal of non-core assets by the end of next year.
“While this iconic gold mine has been a valuable contributor to Barrick over the years, the asset does not fit with our strategy of operating mines that we own. The sale allows us to further focus our portfolio on core operations,” he said.
Bristow said Barrick was pleased to have achieved a successful outcome following a competitive sale process and was confident that Saracen would be an excellent partner at KCGM going forward.
“Proceeds from the sale will be used to further strengthen the balance sheet, invest in our future and support our commitment to deliver returns to our shareholders.”
Saracen is an ASX200 listed gold company with two gold operations in the Kalgoorlie region of Western Australia.