Barrick Announces Agreement to Divest Kanowna in Australia
January 22, 2014 (Source: Marketwired) — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (Barrick or the “company”) today announced it has agreed to divest its interest in the Kanowna Belle and Kundana mine operations (collectively “Kanowna”) in Western Australia to Northern Star Resources Ltd (“Northern Star”) for total cash consideration of A$75 million, subject to certain closing adjustments. The transaction is expected to close in March, 2014.
Kanowna contained proven and probable reserves of 0.6 million ounces1, measured and indicated resources of 0.6 million ounces1 and inferred resources of 0.4 million ounces1 as at December 31, 2012. The mine produced about 225,000 ounces in 2013.
As part of its portfolio optimization program, over the past six months Barrick has announced divestitures of short life, high cost and non-core assets for total consideration of about $850 million, strengthening the overall quality of the company’s portfolio.
UBS Securities Canada Inc. and BofA Merrill Lynch are acting as financial advisors to Barrick with respect to the transaction. Clayton Utz is acting as legal counsel to Barrick.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial or operating performance constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The word “expect” and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold and certain other commodities; legislative, political or economic developments in jurisdictions in which the company does or may carry on business; diminishing quantities or grades of reserves; operating or technical difficulties in connection with mining or development activities; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits; contests over title to properties; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation; our ability to successfully complete announced divestitures, including as a result of a material adverse change; and employee relations. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.
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The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
1 For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 25-35 of Barrick’s Form 40-F.
All amounts expressed in US dollars unless otherwise indicated.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>