Barrick Gold Corporation Acquires 50% Interest in Tethyan's Reko Diq Project in Pakistan

Strategic Insights -

Barrick Gold Corporation has entered into an agreement with Antofagasta PLC to acquire 50% of Tethyan Copper Company's Reko Diq project and associated mineral interests in Pakistan. The move comes after Antofagasta reached a deal with Tethyan to acquire its entire issued share capital for Australian $1.20 per share. Barrick will share equally with Antofagasta in Tethyan's 75% interest in the Reko Diq project, as well as all of Tethyan's rights, licenses, and permits held in Pakistan. The Reko Diq property has reported a total indicated mineral resource of 1.27 billion tonnes grading 0.54% copper and 0.24 g/t gold.

Key Takeaways:

  • Barrick Gold Corporation has agreed to acquire 50% interest in Tethyan Copper Company's Reko Diq project in Pakistan through a deal with Antofagasta PLC.
  • Antofagasta will acquire Tethyan's entire issued share capital for Australian $1.20 per share, approved by Tethyan's Board of Directors.
  • Barrick and Antofagasta will share equally in Tethyan's 75% interest in the Reko Diq project and associated mineral interests in Pakistan.
  • Tethyan has reported a total indicated mineral resource on the Reko Diq property of 1.27 billion tonnes grading 0.54% copper and 0.24 g/t gold, and a total inferred mineral resource of 1.14 billion tonnes grading 0.48% copper and 0.31 g/t gold, calculated in accordance with JORC standards.
  • The deal includes the acquisition of Tethyan's rights, licenses, and permits held in Pakistan, valued at tens of millions of dollars.
  • Antofagasta has also entered into a separate binding agreement with BHP Billiton to extinguish or acquire a material interest in certain of Tethyan's mineral interests for compensation of $60 million.
  • Barrick will reimburse Antofagasta approximately $100 million in cash for 50% of all of the acquisition costs, including the claw-back right, upon successful completion.

Statistics:

  • 1.27 billion tonnes: Total indicated mineral resource on the Reko Diq property grading 0.54% copper and 0.24 g/t gold.
  • 1.14 billion tonnes: Total inferred mineral resource on the Reko Diq property grading 0.48% copper and 0.31 g/t gold.
  • 0.54%: Copper grade of the indicated mineral resource on the Reko Diq property.
  • 0.24 g/t: Gold grade of the indicated mineral resource on the Reko Diq property.
  • $1.20: Australian dollar per share price for Antofagasta's acquisition of Tethyan's entire issued share capital.
  • $100 million: Approximate amount Barrick will reimburse Antofagasta for 50% of the acquisition costs, including the claw-back right.

Sources:

  • "Barrick Gold Corporation Announces Agreement with Antofagasta PLC for Tethyan's Reko Diq Project" (Barrick Gold Corporation, 2006)
  • "Antofagasta Announces Acquisition of Tethyan Copper Company" (Antofagasta PLC, 2006)
  • "Tethyan Copper Company Limited Announces October Quarterly Report" (Tethyan Copper Company Limited, January 11, 2006)
  • "BHP Billiton and Antofagasta PLC Announce Agreement for Tethyan's Mineral Interests" (BHP Billiton, 2006)