Barrick Gold Corp. (TSX:ABX, NYSE:GOLD) announced on Monday that it has reached an agreement to sell its interests in the Tongon gold mine and certain of its exploration properties in Côte d’lvoire to locally owned Atlantic Group for total payments of up to US$305 million.
In consideration for the sale, Barrick will receive US$192 million in cash, including a US$23 million shareholder loan repayment within six months of closing.
The agreement also includes contingent cash payments totaling up to US$113 million payable based on the price of gold over 2.5 years and resource conversions over five years.
Barrick has an 89.7% ownership interest in the Tongon mine.
The transaction is expected to be completed later this year, subject to closing conditions, including approval by the Ivory Coast government.
Barrick said proceeds from the sale will be used to further strengthen the company’s balance sheet.
The Tongon mine poured its first gold in 2010. It was originally scheduled for closure in 2020, but the mine life has continued to be extended through exploration by Barrick, according to the company.
Barrick Mining stock rose nearly 2% to US$34.60 in New York trading on Monday.