Canadian digging huge Barrick Gold Corporation put it has found an understanding to advertise a 50 percentage money in the Zaldivar copper mineral mine in binding Chile to Santiago-based company Antofagasta PLC for one dollar bill.
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BHP Billiton and Rio Tinto’s interest in the Zaldivar copper mine in Chile has not been consummated, with half of the asset being sold to Chilean copper miner Antofagasta overnight on Thursday. Total consideration for the transaction is US$1,005 million in cash, which consists of US$980 million upon closing, subject to customary adjustments, and five annual payments of US$5 million per year, starting in 2016.
Toronto-based Barrick also said it was “actively exploring” a number of other joint venture and sales opportunities. “Such synergies may include the ability to leverage Antofagasta’s extensive in-country procurement programs, contractor relationships and administrative efficiencies”, Barrick said.
Barrick and Antofagasta will create a board to oversee Zaldivar, with each company contributing three directors. “There are many potential opportunities to benefit from Antofagasta’s experience as Barrick evaluates development projects in the future”, Barrick’s co-president Kelvin Dushnisky said.
The deal is expected to be completed in late 2015.
“We are pleased to reach an agreement with the ideal partner for Zaldivar”.
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Both companies said the agreement was a first step in a partnership.
