Barrick Gold Corporation has entered into a mutual investment agreement with Shandong Gold Group for up to US$300 million, further strengthening Barrick’s partnership with one of China’s leading mining companies.
Under the Agreement, Shandong Gold will purchase Barrick shares, with Barrick investing an equivalent amount in shares of Shandong Gold Mining Co., Ltd. – a publicly listed company controlled by Shandong Gold.
“This mutual investment is another reflection of the deepening partnership between our two companies,” said Barrick Executive Chairman John L. Thornton. “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.”
Yumin Chen, Chairman of Shandong Gold Group echoed the sentiment.
“Through this mutual investment and cross shareholding initiative, we will be able to capitalise on respective strengths and realise long-term synergies and 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.”
Barrick and Shandong Gold are 50-50 joint venture partners at the Veladero mine in Argentina, the first step in the partnership between the two companies. As a second step, Shandong Gold is currently carrying out an independent evaluation of Barrick’s Lama project, including an analysis of potential synergies between Lama and the nearby Veladero operation.
Barrick and Shandong Gold have also created internal working groups that are sharing technical expertise and best practices focused on best-in-class mining practices and innovation.