Barrick would sell its energy business
Gold mining based in Toronto said it would sell assets from Venturion Barrick Energy Inc to Venturion Oil Limited, Whitecap Resources Inc. and Canadian Natural Resources Limited
Barrick Gold Corp. said on Tuesday that they decided to sell its energy business by about $ 442 million and would recognized a loss of $ 500 million in the second quarter compared with the agreements.
Gold mining based in Toronto said it would sell assets of Barrick Energy Inc to Venturion Oil Limited, Whitecap Resources Inc and Canadian Natural Resources Limited. Close to 405 million Canadian dollars of the proceeds will be in cash.
Barrick has been looking to sell noncore assets, beaten by a drop in gold prices ansd rising costs plaguing the world wide mining.
The company said about $ 90 million over the $ 500 million would correspond to losses of intangible value.
The mining has already taken a huge asset impairment loss in the second quarter: from U.S. $ 4,500 million to U.S. $ 5,500 million related to its Pascua Lama mega project on the border between Chile and Argentina.
Barrick has halted the construction of the giant gold mine, where the works were detained by Chilean regulators for environmental violations, and must install a new water management infrastructure before resuming work.
The company said energy agreements would be closed by July 31 and would be subject to some conditions.
Barrick’s financial advisors concerning agreements are Rothschild and Scotia Waterous, while Fulbright Norton Rose Canada LLP is its legal assistant.
Source: La tercera
