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Barrick to sell 50% of Zaldivar, forms partnership with Antofagasta

Staff writer |
Barrick Gold Corporation has reached an agreement to sell a 50 percent interest in the Zaldivar copper mine in Chile to Antofagasta for $1.005 billion in cash, forming a new partnership with Antofagasta.

"The sale of 50 percent of Zaldivar is consistent with our strategy to create long-term value for our shareholders. By selling a stake in this non-core asset, we strengthen our balance sheet while maintaining significant exposure to a strong cash-generating operation," said Kelvin Dushnisky, co-president of Barrick.

"We are enthusiastic about partnering with Barrick at Zaldivar. Together, we believe that we are well positioned to enhance the long-term value of the Zaldivar operation through our collective best practices," said Diego Hernandez, CEO of Antofagasta.

Antofagasta will pay Barrick $980 million in cash upon closing and $25 million in additional cash payments over the next five years for a 50 percent stake in the Zaldivar mine. The transaction is expected to be completed in late 2015 and is subject to customary closing conditions.

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