Barrick Gold to Sell Noncore Assets for $720 Million

Barrick Gold Corp., the world's largest gold miner by output, said Thursday it has reached two separate agreements to sell noncore mining assets in Nevada for a total of $720 million.

The Toronto-based miner put the assets up for sale earlier this year as part of its plan to cut debt by $3 billion this year.

The bulk of the sale proceeds, or $610 million, will come from gold-mining peer Kinross Gold Corp., which will purchase Barrick's Bald Mountain gold mine and its 50% stake in the Round Mountain mine in Nevada. Kinross already owns the other 50% of Round Mountain and is its operator.

The remaining assets, which include the Ruby Hill mine and Barrick's 70% interest in the Spring Valley project, will be sold to mining-focused private-equity firm Waterton Global Resource Management for $110 million.

The assets are part of a group of six producing and development-stage noncore assets, mostly in Nevada, that Barrick has been looking to sell to help shore up its balance sheet. Analysts had been expecting the assets to bring in around $500 million.

Barrick said it has now arranged asset sales, joint ventures and partnerships worth $3.2 billion since the start of the year.

Barrick and Kinross also agreed to form an exploration joint venture that will own a major land package on the Bald Mountain property, with Kinross acting as operator.

Barrick said it expects the sale to Waterton to close by year-end, while the sale to Kinross is expected to be completed by mid-January.

Write to Judy McKinnon at judy.mckinnon@wsj.com

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(END) Dow Jones Newswires

November 12, 2015 09:05 ET (14:05 GMT)

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