BARRICK Mining said on Monday it had reached an agreement to sell its 89.7% stake in the Tongon mine in Côte d’lvoire to Atlantic Group, a local company, for $305m.
The sum consists of a $192m in cash inclusive of a $23m shareholder loan repayment within six months of the deal closing, and cash payments of up to $113m linked to the gold price over two-and-a-half years and resource conversions over five years.
The transaction is expected to be completed in late 2025, depending regulatory approvals including the support of the Côte d’lvoire government. The balance of Tongon’s shareholding is held by the government (10%) and local investors (3%).
Tongon produced 56,000 ounces of attributable gold in the six months ended June compared to 81,000 oz at the same stage last year. Developed in 2010 by Randgold Resources, the mine had been identified as non-core since 2019. It was speculated in July that China’s Zijn Mining could bid up to $500m for the mine.
Barrick is restructuring its portfolio to concentrate on high-margin, long-life assets whilst expanding its copper focus and strategic African and Middle Eastern operations.
In September, Barrick said preliminary assessments of its Fourmile project in Nevada indicated annual production capacity of up to 750,000 oz. The company is also hoping to develop the $9bn Reko Diq mine in north-western Pakistan which is forecast to produce as much as 400,000 tons of copper and 500,000 ounces of gold once both of two phases of the project are complete
Atlantic Group, founded 48 years ago, is a diversified private investment firm operating in 15 countries throughout Africa, said Barrick in its announcement.
Proceeds from Tongon would be put to Barrick’s balance sheet, the company said. It last month announced a $170m second quarter dividend declaration, including a five cents per share top-up, to be paid on September 15.
Barrick shocked the market last week announcing the immediate resignation of CEO Mark Bristow, giving no details. He has been replaced by Mark Hill, head of Barrick’s Latam and Asia Pacific regions on an interim basis while the company finds a permanent replacement. Hill will also fill the functions of COO and president at Barrick.
