Gold miner to build on its American profile with major buy
TORONTO—Kinross Gold Corp. has announced it will purchase two of Barrick Gold Corp.’s Nevada assets for $610 million in cash.
The Toronto-based miner will gain a 100 per cent interest in the Bald Mountain gold mine as well as a 50 per cent stake in the Round Mountain mine.
“This strategic transaction represents a rare opportunity to add quality, free cash flowing assets that build on our platform in Nevada, one of the world’s most attractive mining jurisdictions. These assets will increase our production, and are expected to lower costs and add significant and well-defined mineral resource potential,” Paul Rollinson, Kinross’ president and CEO, said.
The company said the deal will focus 56 per cent of its production inside the U.S. and is a strong fit with its open-pit leach skillset. Kinross also said the buy offers potential operational synergies.
“We see a clear path to upside at both assets, with known mineralization extensions throughout the Bald Mountain land package and ongoing operational and continuous improvement initiatives at Round Mountain,” Rollinson added.
Kinross plans to fund the transaction with cash and available liquidity.
The deal is subject to customary conditions and expected to close mid-January of next year.