news-details

Barrick Reaches Agreement with Gold Fields on South Deep Asset

September 11, 2006

TORONTO, ONTARIO, Sep 11, 2006 (MARKET WIRE via COMTEX News Network) -- Barrick Gold Corporation (NYSE: ABX)(TSX: ABX)(LSE: BGD)(SWX: ABX)(EURONEXT PARIS: ABX) announced today that it has entered into a definitive purchase and sale agreement with Gold Fields Limited (GFI: JSE; NYSE) regarding Barrick's indirectly held 50 per cent interest in the South Deep asset and its rights under the joint venture agreement with Western Areas Limited in the Republic of South Africa.

The consideration is comprised of US$1.525 billion of which US$1.2 billion will be paid in cash and the balance of US$325 million in Gold Fields shares (based on the average ADR trading price on the NYSE for the five trading days immediately preceding the closing of the transaction).

The agreement is subject to customary conditions including the receipt of South African regulatory approvals and is expected to close in early 2007. Western Areas Limited, Barrick's joint venture partner in the South Deep asset, has determined not to exercise its preemptive rights.

"This agreement brings value and makes sense for all concerned: Gold Fields has great expertise in deep level mining and there are synergies that they can realize in conjunction with their nearby flagship operations in South Africa," said Greg Wilkins, President and Chief Executive Officer. "Barrick's employees in South Africa will remain focused on advancing the Sedibelo platinum project and providing support and services to Barrick operations and projects in Africa."

Gold Fields' Chief Executive Officer Ian Cockerill said: "The combination of our plans to invest in the deepening of the Driefontein and Kloof gold mines and the purchase of Barrick's 50 per cent interest in South Deep will create additional value for our shareholders and secure Gold Fields' position as the premier gold producer in South Africa for the next fifty years."

Barrick acquired its 50 per cent interest in South Deep through its US$10.0 billion acquisition of Placer Dome Inc. in January 2006. Barrick completed its agreement with Goldcorp Inc. in May 2006 under which Goldcorp acquired four Placer Dome mines and other agreed interests for US$1.6 billion. The rationale for Goldcorp and the Placer Dome interests in Canada was similar to the Barrick/Gold Fields agreement relating to synergies that could be derived from consolidating mining interests.

Barrick's financial advisor is Rothschild and its legal advisors are Bowman Gilfillan in South Africa and Davies Ward Phillips & Vineberg LLP in Canada.

Barrick's vision is to be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner. Barrick's shares are traded on the Toronto, New York, London, Euronext-Paris and Swiss stock exchanges.

Forward-Looking Statements

Certain information included in this press release, including any information as to our future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements." The words "expect", "will", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold or certain other commodities (such as fuel and electricity) and currencies; legislative, political or economic developments in the jurisdictions in which the Company carries on business, including South Africa; operating or technical difficulties in connection with mining or development activities; employee relations; the speculative nature of gold exploration and development, including the risks of diminishing quantities or grades of reserves; contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the US Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Contacts:
INVESTOR CONTACTS:
Barrick Gold Corporation
James Mavor, Vice President, Investor Relations
(416) 307-7463
jmavor@barrick.com
Barrick Gold Corporation
Mary Ellen Thorburn, Director, Investor Relations
(416) 307-7363
mthorburn@barrick.com
MEDIA CONTACT:
Barrick Gold Corporation
Vincent Borg, Senior Vice President,
Corporate Communications
(416) 307-7477
vborg@barrick.com

SOURCE: Barrick Gold Corporation

mailto:jmavor@barrick.com
mailto:mthorburn@barrick.com
mailto:vborg@barrick.com

Stay Connected







Email Alerts

Email Address *
Mailing Lists *


 
Enter the code shown above.

By providing your e-mail address, you are consenting to receive press releases, quarterly and annual reports, presentations and other information concerning Barrick Gold Corporation and its affiliates and partners. You may withdraw your consent at any time using the unsubscribe link below.

Unsubscribe

Email Address:  *
Gold  $ 1,286.32 +0.37 +0.03% Volume: October 17, 2017
ABX NYSE  $ 16.22 -0.02 -0.12% Volume: 7,918,643 October 17, 2017
ABX TSX  $ 20.33 -0.02 -0.1% Volume: 1,646,012 October 17, 2017
Gold  $ 1,286.32 +0.37 +0.03% Volume: October 17, 2017

Our vision is the generation of wealth through responsible mining — wealth for our owners, our people, and the countries and communities with which we partner.

World Gold Council MemberMember of ICMM

En Español