Barrick Gold reached an agreement to sell its 50% interest in Kalgoorlie Consolidated Gold Mines (KCGM) in Western Australia to Saracen Mineral Holdings Ltd. for a total consideration of $750 million in cash. KCGM Operations include the Fimiston Open Pit (the Super Pit), Mount Charlotte Underground Mine and the Fimiston and Gidji processing plants, located adjacent to the city of Kalgoorlie-Boulder, approximately 600 km east of Perth, Western Australia.

“The sale of our non-operating interest in KCGM represents the first step in our plan to realize in excess of $1.5 billion from the disposal of non-core assets by the end of next year,” Barrick President and CEO Mark Bristow said. “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 sale allows us to further focus our portfolio on core operations.”

KCGM produces around 700,000 ounces per year (oz/y) of gold and has a gold reserve of nearly 7 million oz. Newmont Goldcorp owns the other half of KCGM. The transaction is expected to be completed in the fourth quarter of 2019 and is subject to customary closing conditions.

Saracen produces 400,000 oz/y from two mines, Carouse and Thunder Box, in the Kalgoorlie region of Western Australia.