AUSTRALIA – Barrick Gold of Toronto has agreed to sell its 100% interest in the Cowal gold mine in New South Wales to Evolution Mining for US$550 million in cash. The proceeds of the sale will be used to pay down debt. Barrick will also close its office in Perth, Australia, triggering a savings in general and administrative costs.
Evolution Mining was created four years ago through a merger of two Australian precious metals producers, Catalpa Resources and Conquest Mining. Evolution now operates five gold and silver mines in Queensland and Western Australia. In the year ended June 30, 2014, the company produced 428,000 oz of gold equivalent.
Barrick has promised its shareholders that it would reduce its debt by US$3 billion in 2015. To advance this strategy, the company is shedding non-core assets.
Additional information about Barrick is available at Barrick.com.