Barrick is set to sell the Tongon mine in a deal valued at up to $305 million
Barrick Mining (ABX.TO), which has opened a new tab, announced Monday that it will sell Atlantic Group its stake in the Tongon gold mine and some Ivory Coast assets for as much as $305 million. The Canadian miner is looking to bolster its balance sheet.
The Toronto Stock Exchange saw a 3% increase in Barrick’s shares during morning trade.
Barrick has been pursuing this strategy since its 2019 merger with Africa-focused Randgold Resources, and the agreement with Abidjan-based Atlantic is a component of its ambition to monetize non-core assets in markets with growing operating expenses.
Instead, the corporation has been shifting its attention to long-term, high-margin assets, with a particular emphasis on copper and strategic operations in the Middle East and Africa.
The transaction takes place at a time when gold prices are hovering around $3,900 an ounce, with the likelihood of additional rate cuts from the Federal Reserve and safe haven flows from broader economic uncertainties.
According to the firm, Barrick’s successful exploration has allowed Tongon, which started production in 2010, to continue for longer than the initial 2020 closure forecast.
The acquisition includes a $192 million cash payment, which will help Barrick strengthen its balance sheet by covering a $23 million repayment of shareholder loans that must be completed within six months of completion, according to the firm.
Late in 2025 is when the deal is anticipated to be finalized.
