All amounts expressed in U.S. dollars unless
otherwise indicated
Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” or the
“Company”) today announced that it has entered into a mutual
investment agreement with Shandong Gold Group Co., Ltd. (“Shandong
Gold”), further strengthening Barrick’s partnership with one of
China’s leading mining companies.
Under the Agreement, Shandong Gold will purchase
up to $300 million of Barrick shares, and Barrick will invest an
equivalent amount in shares of Shandong Gold Mining Co., Ltd., a
publicly listed company controlled by Shandong Gold. Shares will be
purchased in the open market.
“This mutual investment is another reflection of
the deepening partnership between our two companies,” said Barrick
Executive Chairman John L. Thornton. “Barrick and Shandong both
believe that by working in partnership, we can leverage our
collective strengths to unlock long-term value for our respective
shareholders, just as we are at Veladero today, with the potential
to expand to Lama and other El Indio Belt projects in the
future.”
Yumin Chen, Chairman of Shandong Gold Group,
commented: “Building on the enhanced strategic cooperation
agreement entered on July 9, 2018, Shandong Gold Group is pleased
to announce further steps to deepen the strategic partnership with
Barrick Gold Corporation, through this mutual investment and cross
shareholding initiative, to capitalize on respective strengths and
realize long-term synergies and to unlock long-term value for the
respective shareholders. Building on the excellent partnership at
Veladero today, we believe additional long-term strategic value can
be created by working closely together on other projects including
Lama and El Indio Belt projects in the future.”
Barrick and Shandong Gold are 50-50 joint
venture partners at the Veladero mine in Argentina, the first step
in the partnership between the two companies. As a second step,
Shandong Gold is currently carrying out an independent evaluation
of Barrick’s Lama project, including an analysis of potential
synergies between Lama and the nearby Veladero operation. Barrick
and Shandong Gold have also created internal working groups that
are sharing technical expertise and best practices focused on
best-in-class mining practices and innovation.
INVESTOR CONTACTDeni
NicoskiSenior Vice PresidentInvestor RelationsTelephone:
+1 416 307-7474Email: dnicoski@barrick.com
MEDIA CONTACTAndy
Lloyd Senior Vice PresidentCommunicationsTelephone: +1 416
307-7414Email: alloyd@barrick.com
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION
Certain information contained in this press
release, including any information as to our strategy, projects, or
plans, or future financial or operating performance, constitutes
“forward-looking statements”. All statements, other than statements
of historical fact, are forward-looking statements. The words
“potential”, “opportunity”, “will”, “would” “expect”, “explore”,
“may” and similar expressions identify forward-looking statements.
In particular, this press release contains forward-looking
statements including, without limitation, with respect to (i) the
purchase of up to $300 million of Barrick shares by Shandong Gold
and the purchase of up to $300 million of Shandong Gold Mining Co.,
Ltd shares by Barrick and the expected timing of such purchases,
(ii) the potential to develop a mining project at Lama in
Argentina, (iii) completion and outcome of current and future
studies at Lama, and (iv) the existence of future opportunities for
Barrick and Shandong Gold to work cooperatively on investment
opportunities.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions that, while considered
reasonable by Barrick in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper, or certain other commodities
(such as silver, diesel fuel, natural gas, and electricity); the
speculative nature of mineral exploration and development; changes
in mineral production performance, exploitation, and exploration
successes; diminishing quantities or grades of reserves; increased
costs, delays, suspensions and technical challenges associated with
the development and construction of capital projects; operating or
technical difficulties in connection with mining or development
activities, including geotechnical challenges and disruptions in
the maintenance or provision of required infrastructure and
information technology systems; failure to comply with
environmental and health and safety laws and regulations; timing
of, receipt of, or failure to comply with necessary permits and
approvals; the impact of global liquidity and credit availability
on the timing of cash flows and the values of assets and
liabilities based on projected future cash flows; adverse changes
in our credit ratings; the impact of inflation; fluctuations in the
currency markets; changes in U.S. dollar interest rates; risks
arising from holding derivative instruments; changes in national
and local government legislation, taxation, controls, or
regulations and/or changes in the administration of laws, policies
and practices, expropriation or nationalization of property and
political or economic developments in Canada, the United States,
Argentina, and other jurisdictions in which Barrick does or may
carry on business in the future; risks related to international
operations, including economic and political instability in foreign
jurisdictions in which Barrick and Shandong Gold operate; damage to
Barrick’s or Shandong Gold’s reputation due to the actual or
perceived occurrence of any number of events, including negative
publicity with respect to the handling of environmental matters or
dealings with community groups, whether true or not; the
possibility that future exploration results will not be consistent
with Barrick’s expectations; risk of loss due to acts of war,
terrorism, sabotage, and civil disturbances; litigation; contests
over title to properties, particularly title to undeveloped
properties, or over access to water, power, and other required
infrastructure; risks associated with the fact that certain of the
initiatives described in this press release are still in the early
stages and may not materialize; risks associated with working with
partners in jointly controlled assets; and employee relations
including loss of key employees; increased costs and physical
risks, including extreme weather events and resource shortages,
related to climate change; and availability and increased costs
associated with mining inputs and labor. In addition, there are
risks and hazards associated with the business of mineral
exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins, flooding, and gold bullion, copper cathode, or
gold or copper concentrate losses (and the risk of inadequate
insurance, or inability to obtain insurance, to cover these
risks).
Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers
are cautioned that forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in
this press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements, and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
Barrick disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
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