Shandong looks to $1.26 billion loans for Argentine gold mine

Shandong looks to $1.26 billion loans for Argentine gold mine

Chinese gold producer Shandong Gold Mining is seeking up to US$1.26 billion in loans to fund the purchase of a 50% stake in Barrick Gold’s Veladero mine in Argentina.

The financing package could be provided by two Chinese state-owned banks, with Reuters reporting that $960 million would be provided towards the acquisition, with the remaining $300 million as working capital.

Barrick announced the $960 million sale of half of their operation in April, which activated the start of a joint venture relationship with Shandong that also involved the opportunity to develop the Pascu-Lama project in the region.

The long-delayed gold, silver and copper development, which overlaps the border of Argentina and Chile, will be evaluated by both companies with the hope of successfully moving the project forward.

Additional investment opportunities within the resource rich area, known as the El Indio Gold Belt, will also be explored by Barrick and Shandong.