Australia’s Saracen Mineral Holdings Ltd. said on Monday it would buy Canadian-listed Barrick Gold Corp.’s 50-per-cent stake in the Super Pit gold mine in western Australia for $750-million.
The Super Pit is one of Australia’s largest gold mines with an average production of 660,000 ounces per annum at an all-in sustaining cost of about 1,100 Australian dollars an ounce, according to Saracen.
Saracen will buy Barrick’s half of Kalgoorlie Consolidated Gold Mines Joint Venture, which owns and operates the Super Pit gold mine. U.S.-listed Newmont Goldcorp Corp., the world’s largest gold miner, retains the other 50 per cent of the joint venture.
The Australian gold miner will fund the acquisition partially through a 796-million Australian dollar capital raising and the balance through a loan of 450-million Australian dollars.
The divestment is part of Barrick’s, the world’s second largest gold producer, drive to dispose of non-core assets.
“While this iconic gold mine has been a valuable contributor to Barrick over the years, the asset does not fit with our strategy of operating mines that we own,” the Canadian gold producer said in a statement.
The deal is expected to be completed in the December quarter and is subject to regulatory approvals from the West Australian government.