Barrick Announces Agreement to Divest its Minority Interest in Marigold in
Further Progress in Portfolio Optimization Process
TORONTO, ONTARIO -- (Marketwired) -- 02/04/14 -- All amounts
expressed in US dollars unless otherwise indicated.
Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) (Barrick or the
"company") today announced it has agreed to divest its minority
interest in the Marigold mine ("Marigold") in Nevada to Silver
Standard Resources Inc. ("Silver Standard") for total cash
consideration of $86 million, subject to certain closing adjustments.
The transaction is expected to close in April, 2014.
Barrick has a 33.3% interest in Marigold, with the remaining 66.7%
interest owned by the operator, Goldcorp Inc. ("Goldcorp"). Barrick's
share of production in 2013 was about 55,000 ounces of gold at all-in
sustaining costs (AISC) of about $1,545 per ounce(1). Barrick's share
of proven and probable reserves at December 31, 2012 was 1.6 million
ounces(2), and its share of measured and indicated resources and
inferred resources was 0.2 million ounces(2) and 0.4 million
The transaction is a result of a single, coordinated divestiture
process jointly executed with Goldcorp. Proceeds to Barrick have been
adjusted to reflect Goldcorp's position as manager and majority owner
of the joint venture.
The divestiture of Barrick's minority interest in Marigold is part of
Barrick's ongoing portfolio optimization process to maximize free
cash flow in line with the company's disciplined capital allocation
RBC Capital Markets is acting as financial advisor to Barrick with
respect to the transaction.
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 copper or certain other commodities; changes in
national and local government legislation, taxation, controls,
regulations, expropriation or nationalization of property and
political or economic developments in the United States and other
jurisdictions in which the company does or may carry on business in
the future; and our ability to successfully complete divestitures.
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
(1) All-in sustaining cost per ounce is a non-GAAP financial performance
measure with no standardized definition under IFRS. See pages 44-49 of
Barrick's Third Quarter 2013 Report.
(2) 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.
INVESTOR CONTACT: Amy Schwalm
Vice President, Investor Relations
MEDIA CONTACT: Andy Lloyd
Vice President, Communications
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