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Mining industry

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

Strategic Insights

— 1 min read

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, in the event that Antofagasta is successful in its bid to acquire Tethyan. The Reko Diq project is a highly prospective copper and gold mine in the Chagai Hills region of Pakistan, with indicated mineral resources of 1.27 billion tonnes grading 0.54% copper and 0.24 g/t gold, and inferred mineral resources of 1.14 billion tonnes grading 0.48% copper and 0.31 g/t gold.

Key Takeaways:

  • Barrick Gold Corporation has agreed to acquire 50% of Tethyan Copper Company's Reko Diq project in Pakistan, in partnership with Antofagasta PLC.
  • The Reko Diq project is located in the Chagai Hills region of Pakistan, with significant copper and gold mineral resources.
  • The indicated mineral resources of the Reko Diq project total 1.27 billion tonnes, grading 0.54% copper and 0.24 g/t gold.
  • The inferred mineral resources of the Reko Diq project total 1.14 billion tonnes, grading 0.48% copper and 0.31 g/t gold.
  • Tethyan Copper Company has reported reserve and resource estimates conforming to JORC standards.
  • Antofagasta PLC will pay Australian $1.20 per share for the entire issued share capital of Tethyan, with the offer approved unanimously by Tethyan's Board of Directors.
  • Barrick will reimburse Antofagasta approximately $100 million in cash for 50% of all acquisition costs, including the claw-back rights.
  • BHP Billiton's rights to claw-back a material interest in certain of Tethyan's mineral interests will be extinguished or acquired for compensation of $60 million.

Statistics:

  • Tethyan Copper Company's Reko Diq project has 1.27 billion tonnes of indicated mineral resources at 0.54% copper and 0.24 g/t gold.
  • Tethyan Copper Company's Reko Diq project has 1.14 billion tonnes of inferred mineral resources at 0.48% copper and 0.31 g/t gold.
  • Australian $1.20 per share was offered by Antofagasta PLC for Tethyan's entire issued share capital.
  • BHP Billiton's claw-back rights will be extinguished or acquired for compensation of $60 million.
  • Barrick Gold Corporation will reimburse Antofagasta approximately $100 million in cash for 50% of all acquisition costs.

Sources:

  • Barrick Gold Corporation press release, no date specified.
  • Antofagasta PLC press release, no date specified.
  • Tethyan Copper Company Limited press release, January 11, 2006.

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