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Mining industry

Teck Cominco Sells 50% Interest in Williams and David Bell Gold Mines to Barrick Gold for $65 Million US

Strategic Insights

— 2 min read

Teck Cominco Ltd. has agreed to sell its 50% stake in the Williams and David Bell gold mines in the Hemlo district of northern Ontario to an affiliate of Barrick Gold Corp. for $65 million US. This sale is part of Teck's plan to divest non-core assets and reduce its significant debt, totaling over $9 billion, which was accumulated to finance last year's $14 billion acquisition of the Fording Coal Trust. The transaction will have an effective date of January 1 and is expected to close in the second quarter, pending regulatory approvals. This is the second gold asset disposal by Teck in recent months, following the sale of its 60% interest in the Lobo-Marte gold property in northern Chile and its 26% stake in the Petaquilla copper project in Panama.

Key Takeaways:

  • Teck Cominco has sold its 50% interest in the Williams and David Bell gold mines to an affiliate of Barrick Gold Corp. for $65 million US.
  • The sale is part of Teck's plan to dispose of non-core assets and reduce its significant debt, totaling over $9 billion.
  • The transaction will have an effective date of January 1 and is expected to close in the second quarter, pending regulatory approvals.
  • This is the second gold asset disposal by Teck in recent months, following the sale of its 60% interest in the Lobo-Marte gold property in northern Chile and its 26% stake in the Petaquilla copper project in Panama.
  • Teck also announced the sale of its indirect interest in Sociedad Minera El Brocal S.A.A. to Compania de Minas Buenaventura S.A.A. for $35 million US in cash.
  • The company's debt of over $9 billion was accumulated to finance last year's $14 billion acquisition of the Fording Coal Trust, Canada's largest metallurgical coal producer for the steel industry.
  • Teck has also revealed it's in "advanced discussions" with potential purchasers of its Pogo, Morelos, and Turkey Exploration assets.

Statistics:

  • $65 million US: the purchase price for Teck's 50% interest in the Williams and David Bell gold mines.
  • $14 billion: the cost of Teck's acquisition of the Fording Coal Trust.
  • $9 billion: the amount of debt accumulated by Teck to finance the acquisition of the Fording Coal Trust.
  • $35 million US: the purchase price for Teck's indirect interest in Sociedad Minera El Brocal S.A.A.

Sources:

  • "Teck Cominco Ltd. Sells 50% Interest in Williams and David Bell Gold Mines to Barrick Gold Corp." (Source: Bloomberg)

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