TORONTO Jan 22 Barrick Gold Corp said
on Wednesday it has agreed to sell its Kanowna gold mine in
Western Australia to Northern Star Resources Ltd for A$75
million ($66.4 million), as part of its move to sell non-core
assets and focus on its lower cost mines.
The mine produced about 225,000 ounces of gold in 2013. It
contains proven and probable reserves of roughly 600,000 ounces,
along with measured and indicated resources of another 600,000
The deal is the latest in a string of asset sales by
Barrick, which is attempting to reduce its debt load,
strengthen its balance sheet and regain favor with investors.
Last August, Barrick agreed to sell three of its high-cost
gold mines in Australia to Gold Fields Ltd for $300
The three mines, Granny Smith, Lawlers and Darlot, accounted
for 6 percent of Barrick's gold output in 2012 and less than 2
percent of the gold miner's proven and probable reserves as of
Dec. 31, 2012.
In the last six months, Barrick has sold $850 million worth
of short life, high-cost and non-core assets. The company also
completed a massive $3 billion equity issue late last year, as
part of moves to shore up its balance sheet.
Goldcorp Inc and Barrick are looking to sell their
jointly owned Marigold mine in Nevada, according to sources
familiar with the situation.
UBS Securities Canada Inc and BofA Merrill Lynch are acting
as financial advisers to Barrick on the sale of the Kanowna