Barrick Gold (T.ABX), Goldcorp. (T.G) selling Nevada mine to Silver Standard (T.SSO)

Stockhouse Editorial
0 Comments| February 4, 2014


Barrick Gold Corp. (TSX: T.ABX, Stock Forum)  and partner Goldcorp Inc. (TSX: T.G, Stock Forum) are selling their interests in the Marigold mine in Nevada to Silver Standard Resources Inc. (TSX: T.SSO, Stock Forum) for US$275million.

Silver Standard said Marigold would immediately add to its cash flow and reserves and give its shareholders exposure to the gold sector.

``The acquisition of Marigold accomplishes our strategic goal of adding an operating mine in a well-established, low-risk mining jurisdiction,'' said John Smith, Silver Standard's president and CEO.

``We retain our financial capacity to continue internal growth and expect improved corporate operating cash flow going forward as a result of our 2013 cost restructuring program and the addition of the Marigold mine.''

Silver Standard shares eased 1.9% to $8.39 Tuesday, leaving a market cap of $677.5 million, based on 80.8 million shares outstanding. The 52-week range is $12.27 and $5.38.

The deal is subject to certain closing adjustments and is expected to close in April.

Barrick has a 33.3% share of Marigold, with the other 66.7% owned by the operator, Goldcorp, which did not say whether the sale has anthing to do with its hostile bid for Osisko Mining (TSX: T.OSK, Stock Forum).

The divestiture is part of Toronto-based Barrick's ongoing effort to maximize cash flow.

Barrick's share of production at Marigold in 2013 was about 55,000 ounces of gold.

In late January, Barrick said it was selling its interest in two mine operations in Western Australia for AU$75 million in cash.

The sale of the Kanowna Belle and Kundana operations to Northern Star Resources Ltd. is expected to close in March.

Barrick says the price, equivalent to about C$73.6 million, is subject to certain closing conditions. (With files from the Canadian Press).

Tags: GOLD

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