South African miner Gold Fields (NYSE:GFI) plans to purchase three Barrick Gold (NYSE:ABX) mines in Australia for $300 million.
The acquisitions will boost Gold Field’s annual production by 452,000 ounces, pushing expected 2013 production to a range of 1.83 and 1.9 million ounces.
The divestment “demonstrates further progress as we work to optimize the company’s portfolio and maximize free cash flow in line with our disciplined approach to capital allocation,” according to Jamie Sokalsky, President and CEO of Barrick.
The deal is subject to approval by Australia’s Foreign Investment Review Board, “consent of the Western Australian Minister for Mines for the transfer of the property tenements, and the assignment of certain supply contracts.”
Gold Field’s stock price was down over 5% by mid-day trading Thursday.
Read Barrick’s press release in full here.
