Barrick Gold sells $210 million stake in China’s Shandong Gold Mining

Barrick Gold has confirmed it sold a partial stake in Shandong Gold Mining for US$210 million following a rise in the Chinese gold firm’s share price.

Canada-based Barrick sold close to 79.3 million shares of Shandong priced at HK$20.50 ($2.65) a share, having acquired them at a cost basis of HK$10.50 a share in the fourth quarter of 2018.

Gold stocks have been in the ascendency since the COVID-19 outbreak decimated equity markets and sent investors towards safe haven assets, allowing Barrick to profit from Shandong’s higher price.

“Barrick continues to hold 10,250,000 shares of Shandong Gold, representing a 2.05% interest in Shandong Gold’s Hong-Kong listed (H-class) shares, re-affirming its commitment to the strong existing long-term strategic partnership between the two companies,” the company said.

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

The two companies have been partners at the Veladero gold mine in Argentina. Barrick sold a 50% interest in the mine to Shandong for $960 million in 2017.

At one point, Barrick and Shandong were looking to increase their cooperation beyond the Argentinian joint venture and had said they would potentially work together on acquisitions.

@RGNonline