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‘Barrick Gold in talks regarding Australian mine’
Posted on Friday, 17 February 2017 14:15
Canada’s Barrick Gold is in late stage negotiations with a potential buyer regarding its stake in the Kalgoorlie gold mine in western Australia, president Kelvin Dushnisky told the Financial Times.

According to the executive, the miner may have received an offer of USD 1.30 billion for the asset, known as the Super Pit, last year.

Dushnisky said the potential bidder is working through the process and if they should come back with the right price the company would be keen on pursuing a deal.

He declined to comment on whether the bidder was Minjar Gold, a Chinese unit of property company Shandong Tyan Home, which reportedly made the original offer last year.

A Bloomberg report earlier this month suggested Barrick Gold’s plans to sell the mine has stalled as the buyer, expected to be Minjar Gold, has faced delays on securing financing for the USD 1.30 billion proposal.

That being said, Newmont Mining has also reportedly expressed interest in participating in an extension of the group’s sale process.

The Kalgoorlie mine has about 1,100 full time employees and contractors with the future of the Super Pit and its neighbouring Mt Charlotte underground mine is a constant source of discussion in the area given it remains the largest employer in a city that ranks as Australia’s unofficial gold capital.

Just yesterday Barrick Gold, the majority shareholder of Acacia Mining, said it supports a merger between the entity and Africa’s Endeavour Mining.

Earlier this week the company reported its progress on projects which have the potential to contribute up to 1.10 million ounces of gold production at Cortez, Goldrush, Lagunas Norte, and Turquoise Ridge.

Shares in Barrick Gold increased 6.1 per cent to USD 20.50, which valued the business at USD 23.89 billion.

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