Barrick Mining to Sell Tongon Gold Mine Stake to Atlantic Group for $305 Million

What's Happening?

Barrick Mining Corporation has agreed to sell its stake in the Tongon gold mine and associated exploration properties in Côte d’Ivoire to Atlantic Group for up to $305 million. The deal includes a cash payment of $192 million, with a $23 million shareholder loan repayment due within six months of closing. Additional contingent cash payments of up to $113 million are tied to gold prices and resource conversions over the next five years. The transaction is expected to close in late 2025, pending customary conditions and government approval. Barrick plans to use the proceeds to strengthen its financial position and enhance shareholder returns. The Tongon mine, which has contributed over $2 billion to the Ivorian economy since 2010, was initially slated for closure in 2020 but has seen its life extended through exploration.

Why It's Important?

The divestment of the Tongon gold mine by Barrick Mining is a strategic move to optimize its asset portfolio and focus on enhancing shareholder value. By selling its stake, Barrick can redirect resources to other high-potential projects and improve its financial standing. The transaction also highlights the growing interest in African mining assets, with Atlantic Group expanding its footprint in the region. The sale is significant for Côte d’Ivoire, as it involves a major contributor to the local economy, providing jobs and infrastructure development. The deal underscores the importance of strategic partnerships in the mining sector, as companies seek to leverage local expertise and resources to maximize returns.

What's Next?

Upon completion of the sale, Barrick will focus on other strategic initiatives, including potential new projects and investments. The transaction is subject to approval by the Government of Côte d’Ivoire, which will likely assess the impact on local economic development and employment. Atlantic Group, with its diverse interests across Africa, may explore further expansion opportunities in the mining sector, leveraging its new acquisition to enhance its market position. The deal could also prompt other mining companies to consider similar divestments or acquisitions, as they seek to optimize their portfolios in response to changing market conditions.