The total consideration consists of an up-front cash payment of $20 million, additional cash consideration of $10 million payable on the first anniversary of closing and $20 million payable on the second anniversary of closing, a 2% net smelter return royalty on gold and silver produced, Barrick said.
Boroo will also assume 100% of the $173 million reclamation bond obligations for Lagunas Norte in two tranches: 50% on closing and 50% within one year of closing.
Barrick chief executive Mark Bristow said the sale was in line with Barrick’s policy of selling non-core interests — a process which has already realized some $1.5 billion — to focus its portfolio on Tier One assets.
The proposed acquisition would benefit the mine’s stakeholders in Peru by giving Boroo the opportunity to extend its life by accessing satellite resources and adapting the infrastructure, Barrick said.
