Barrick and Goldcorp join forces in Chile gold projects

Barrick and Goldcorp join forces in Chile gold projects

Two of the world’s biggest gold producers, Barrick Gold (TSX:ABX) and Goldcorp (TSX:G) will team up to advance a number of mining projects based in Northern Chile.

The Canadian miners will back a 50-50 joint venture focusing on the development of the Cerro Casale project in the Atacama region.

Vancouver-based Goldcorp will join Barrick on the project with the purchase of Kinross Gold Corp’s (TSX:V) 25% stake in Cerro Casale along with other related assets, in a US$260 million deal.

“We are pleased to welcome Goldcorp as our new joint venture partner at Cerro Casale, and look forward to the fresh perspective they can bring to the project, in addition to the potential for synergies in the district,” said Barrick president Kelvin Dushnisky.

Cerro Casale is one of the world’s largest undeveloped gold and copper deposits, with an estimated 23 million ounces of gold reserves, but Barrick is yet to begin construction at the site.

Furthermore, Goldcorp’s $250 million takeover of Exeter Resource Corporation (TSX:XRC) will take the company into ownership of the nearby Caspiche gold-copper project.

The Caspiche site is located only 10km north of Cerro Casale.