The Ivory Coast's Tongon gold mine, which began operating in 2010 and has had its life extended beyond its scheduled 2020 closure.Thierry Gouegnon/Reuters
Barrick Mining said on Monday it will sell its interests in the Tongon gold mine and certain assets in Ivory Coast to Atlantic Group for up to US$305-million as the Canadian miner looks to strengthen its balance sheet.
Shares of Barrick ABX-T rose 3 per cent in morning trading on the Toronto Stock Exchange.
The deal with Abidjan-based Atlantic is part of Barrick’s plan to monetize non-core assets in markets with rising operational costs, a strategy it has undertaken since its 2019 merger with Africa-focused Randgold Resources.
The company has instead been pivoting towards high-margin, long-life assets, with a growing focus on copper and strategic operations in Africa and the Middle East.
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The deal comes as gold prices hover around $3,900 an ounce, supported by safe-haven flows from broader economic uncertainty, as well as prospects of further Federal Reserve rate cuts.
Tongon, which began production in 2010, has had its life extended beyond the originally scheduled 2020 closure through Barrick’s successful exploration, the company said.
The deal includes a cash payment of US$192-million, which covers a US$23-million shareholder loan repayment to be made within six months of closing, with the proceeds helping Barrick strengthen its balance sheet, the company said.