While the company had other projects in the country, the Bayan Khundii gold project went from greenfield prospect to being its main asset in roughly nine months.
Deal will also see the two firms looking at jointly developing the nearby Pascua-Lama gold, silver and copper project and evaluating additional investment opportunities in the area.
A local government spokesman said a pipe carrying a “rich mixture” of gold and rocks came lose on Tuesday night, but no official information has been disclosed.
Equipment and services suppliers will have to wait at least another year until they can fully feel the impact of this trend, says CSA Global — the world's second-largest mining sector consultancy.