El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
Barrick Gold (NYSE:GOLD)(TSX:ABX) announced Tuesday it has reached an agreement to sell its 100% interest in the Lagunas Norte mine in Peru to Singapore’s Boroo Pte Ltd for a total consideration of up to $81 million, plus the assumption by Boroo of Barrick’s closure liability relating to Lagunas Norte of $226 million backed by an existing $173 million bonding obligation.
Boroo, formerly known as OZD ASIA PTE Ltd, is a privately held investment holding company operating, developing and acquiring gold properties globally. Boroo owns and operates various production-stage and development-stage assets in Central Asia.
The total consideration consists of an upfront cash payment of $20 million, additional cash consideration of $10 million payable on the first anniversary of closing and $20 million payable on the second anniversary of closing, a 2% net smelter return royalty on gold and silver produced, Barrick said.
Boroo will also assume 100% of the $173 million reclamation bond obligations for Lagunas Norte in two tranches: 50% on closing and 50% within one year of closing.
Barrick chief executive Mark Bristow said the sale was in line with Barrick’s policy of selling non-core interests — a process which has already realized some $1.5 billion — to focus its portfolio on tier one assets.
The proposed acquisition would benefit the mine’s stakeholders in Peru by giving Boroo the opportunity to extend its life by accessing satellite resources and adapting the infrastructure, Barrick said.
