Barrick mulls Kalgoorlie bid of roughly $1.3 billion by China’s Minjar: sources – by John Tilak and Susan Taylor (Reuters Canada – November 24, 2016)

TORONTO (Reuters) – Barrick Gold is reviewing the financial backing behind an approximately $1.3 billion bid for its stake in Australia’s Kalgoorlie mine by Minjar Gold, a unit of Shanghai-listed Shandong Tyan Home, two sources told Reuters.

Toronto-based Barrick, the world’s largest gold producer, is studying the offer for the 50 percent stake to ensure Minjar has adequate resources and support to complete the transaction, said the sources, who declined to be identified as the matter is private. Barrick declined to comment.

Little-known Minjar has trumped offers by Australian, Chinese and Canadian companies for the asset, the sources said.Newmont Mining, Barrick’s joint venture partner at Kalgoorlie and mine operator, has said it was interested in buying the remaining stake, but price has been a sticking a point.

It was unclear if Newmont was interested in matching Minjar’s offer, but the sources said the price made a counter-offer less likely.

Newmont spokesman Omar Jabara declined to comment, saying only that “Barrick will decide which of the offers it received makes the most sense for them.”

For the rest of this article, click here: