China's Shandong Gold Mining to seek loans to buy Barrick mine stake

Workers walk at Barrick Gold Corp's Veladero gold mine in Argentina's San Juan province, April 26, 2017. Picture taken April 26, 2017. REUTERS/Marcos Brindicci

SINGAPORE (Reuters) - Shandong Gold Mining Co Ltd 600547.SS plans to apply for loans worth up to $1.26 billion via its unit to fund the acquisition of a stake in Barrick Gold Corp's ABX.TO mine in Argentina, the Chinese precious metal producer said on Friday.

The Chinese producer’s unit Shandong Gold Mining (Hong Kong) Co Ltd would apply for the loans from offshore units of two Chinese state-owned banks, it said in a statement.

Out of the total borrowing, $960 million would be used to fund the acquisition of a 50 percent stake in Canadian firm Barrick’s Veladero gold mine in Argentina, while the remaining $300 million would be allocated as working capital.

In April, Shandong Gold Mining said it would acquire the stake in the Veladero mine owned by Barrick, the world’s largest gold producer. Chinese firms have been seeking resources overseas to expand their global footprint.

Reporting by Lee Chyen Yee; Editing by Edmund Blair