(Kitco News) – Barrick Gold (NYSE: GOLD, TSX: ABX) is well on its way to achieving its goal of raising $1.5 billion in cash as it sells its stake in another non-core asset.
On Tuesday, the gold-mining juggernaut announced that it was selling its 90% stake in the Massawa project in Senegal to Teranga Gold Corp (TSX: TGZ). for $430 million.
The company said that the stock-and-cash deal consists of $300 million in cash with $80 million worth of Teranga shares. The sale also includes a contingent payment of up to $50 million, which is based upon the average gold price for the three-year period immediately following closing.
“The agreement with Teranga, which will realize the full value of this asset and create a substantial new West African gold-mining company with significant African ownership, is the outcome of this process,” the company said in a press release.
The Massawa project has been in former Randgold’s portfolio for a decade, the company. The transaction is expected to close in the first quarter of 2020
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