Barrick Gold sells stake in Chinese miner

Canadian gold major Barrick Gold has sold most of its shares in Chinese miner Shandong Gold, booking gross proceeds of $210-million.

The company sold 79 268 800 shares of Shandong Gold at a price of HK$20.50 a share – nearly double the HK$10.50 that it bought the shares for in 2018 .

Barrick continues to hold 10 250 000 shares of Shandong Gold, which is its joint venture (JV) partner in the Veladero mine, in Argentina. Shandong bought a 50% interest in the mine for $960-million in 2017.

The Veladero JV was billed as the first step in a partnership between the two companies, which in 2018 signed an “enhanced strategic cooperation agreement” and also entered into a mutual investment and cross shareholding initiative.

Barrick affirmed its commitment to the “strong existing long-term strategic partnership” between the two companies.

The shares were sold by an accelerated book building process and were placed primarily with new and existing institutional shareholders of Shandong Gold.