Barrick Gold, Shandong Announce Investment Agreement
(Kitco News) -Barrick Gold Corp. (NYSE, TSX: ABX) has entered into amutual investment agreement with Shandong Gold Group Co., Ltd. to furtherstrengthen ties between the two companies after the two firms announced astrategic cooperation agreement this summer, officials reported Monday.
Under the latest announcement, Shandong Gold will purchaseup to $300 million of Barrick shares, and Barrick will invest an equivalentamount in shares of Shandong Gold Mining Co., Ltd., a publicly listed companycontrolled by Shandong Gold.
The announcement was the second major one made by Barrick onMonday as the Denver Gold Forum gets under way. Often major announcements occurin conjunction with the gathering of gold-industry participants. EarlierMonday, Barricksaid it was merging with Randgold Resources Ltd. (Nasdaq: GOLD) tocreate the largest gold producer in the world.
“Barrick and Shandong both believe that by working inpartnership, we can leverage our collective strengths to unlock long-term valuefor our respective shareholders, just as we are at Veladero today, with thepotential to expand to Lama and other El Indio Belt projects in the future,”says Barrick Executive Chairman John L. Thornton.
Barrick and Shandong Gold are 50-50 joint venture partnersat the Veladero mine in Argentina. Also, Shandong Gold is currently carryingout an independent evaluation of Barrick’s Lama project, including an analysisof potential synergies between Lama and nearby Veladero. The two companies havealso created internal working groups that are sharing technical expertise andbest practices focused on best-in-class mining practices and innovation.
By Allen SykoraFor Kitco News
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