Barrick Gold To Sell Some Non-core Assets In Nevada For $720 Mln - Quick Facts

(RTTNews) - Barrick Gold Corp. (ABX, ABX.TO) said it has entered into agreements to sell a number of non-core assets in Nevada for $720 million in cash. The sales are part of the company's efforts to strengthen its balance sheet and further focus its portfolio on core mines that will drive free cash flow growth.

The sale include 100 percent of the Bald Mountain mine, 100 percent of the Ruby Hill mine, Barrick's 50 percent interest in the Round Mountain mine and its 70 percent interest in the Spring Valley project.

Barrick has agreed to sell its 50 percent interest in the Round Mountain mine and 100 percent of the Bald Mountain mine to Kinross Gold Corp. (K.TO, KGC). Barrick and Kinross have also agreed to form an exploration joint venture that will own a large land package on the Bald Mountain property.

Barrick will sell its 70 percent interest in the Spring Valley project and 100 percent interest in the Ruby Hill mine to subsidiaries of Waterton Precious Metals Fund II Cayman, LP for $110 million in cash.

The transaction with Waterton is expected to be completed by the end of 2015, while the transaction with Kinross is expected to be completed by mid-January 2016.

Including these transactions, Barrick has announced asset sales, joint ventures and partnerships worth $3.2 billion since the start of 2015. The company is on track to meet its stated debt reduction target of $3 billion for 2015, which, when completed, will represent a 23 percent reduction in total debt since the start of the year.