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Saracen Mineral to buy Barrick's Super Pit gold mine stake for US$750m

[BENGALURU] Australia's Saracen Mineral Holdings Ltd said on Monday it would buy Canadian-listed Barrick Gold Corp's 50 per cent  stake in the Super Pit gold mine in Western Australia for US$750 million.

The Super Pit is one of Australia's largest gold mines with an average production of 660,000 ounces per annum at an all-in sustaining cost of about A$1,100 per ounce, according to Saracen.

Saracen will buy Barrick's half of Kalgoorlie Consolidated Gold Mines Joint Venture, which owns and operates the Super Pit gold mine. US-listed Newmont Goldcorp Corp, the world's largest gold miner, retains the other 50 per cent of the joint venture.

The Australian gold miner will fund the acquisition partially through a A$796 million (S$742.4 million) capital raising and the balance through a loan of A$450 million.

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The divestment is part of Barrick's, the world's second largest gold producer, drive to dispose of non-core assets.

"While this iconic gold mine has been a valuable contributor to Barrick over the years, the asset does not fit with our strategy of operating mines that we own," the Canadian gold producer said in a statement.

The deal is expected to be completed in the December quarter and is subject to regulatory approvals from the West Australian government.