Canadian gold mining company Barrick Gold Corporation (Barrick) has entered into a mutual investment agreement with Chinese gold mining company Shandong Gold Group Co., Ltd. (Shandong Gold). Already 50-50 joint venture (JV) partners at the Veladero mine in Argentina, this partnership will further strengthen their connection.
Under the agreement, Shandong Gold is to purchase up to CAN$300 million of Barrick shares, and Barrick will invest an equivalent amount in shares of Shandong Gold Mining Co., a publicly listed company controlled by Shandong Gold. Shares will be purchased in the open market.
Barrick Executive Chairman, John L. Thornton, said: “This mutual investment is another reflection of the deepening partnership between our two companies”.
He added: “Barrick and Shandong both believe that by working in partnership, we can leverage our collective strengths to unlock long-term value for our respective shareholders, just as we are at Veladero today, with the potential to expand to Lama and other El Indio Belt projects in the future.”
Chairman of Shandong Gold Group, Yumin Chen, commented: “Building on the enhanced strategic cooperation agreement entered on 9 July 2018, Shandong Gold Group is pleased to announce further steps to deepen the strategic partnership with Barrick Gold Corporation, through this mutual investment and cross shareholding initiative, to capitalise on respective strengths and realise long term synergies and to unlock long term value for the respective shareholders.
“Building on the excellent partnership at Veladero today, we believe additional long-term strategic value can be created by working closely together on other projects including Lama and El Indio Belt projects in the future.”
Read the article online at: https://www.globalminingreview.com/finance-business/25092018/barrick-and-shandong-gold-strengthen-partnership-with-new-mutual-investment-agreement/