Boroo Pte. Ltd. has completed the previously announced acquisition of the Lagunas Norte mine in Peru from Barrick Gold Corp. Lagunas Norte is an open-pit mine located 140 kilometers (km) east of Trujillo in the Alto Chicama mining district of the Peruvian Andes. The mine has produced more than 10 million ounces (oz) of gold since 2005. While mining operations were placed on care and maintenance in 2019, Lagunas Norte’s gold recovery plant has continued to produce gold from leach pad ore and Boroo expects to recover approximately more than 100,000 oz of gold by 2023.

Boroo said it intends to commit significant energy and resources toward developing operations at Lagunas Norte. The next phase of the mine will be to recover gold from carbonaceous oxide ore through the Carbonaceous Material Oxides Project (CMOP) and sulphide ore through the Refractory Material Project (PMR). The development of a sulphide processing infrastructure offers the ability to unlock district potential.

“The completion of this transformative acquisition positions Boroo to realize its strategic goal to become a global midtier precious metal producer within the next three years,” Boroo CEO Dulguun Erdenebaatar said. “With significant upside potential in our portfolio, Boroo’s priorities are to efficiently unlock value from the advanced-stage CMOP development project, extend the life of the existing heap-leach operation, pursue various optimization initiatives and advance near-mine exploration projects.”

Total aggregate consideration for the transaction is up to $81 million plus the assumption by Boroo of Barrick’s closure liability relating to Lagunas Norte of $226 million backed by an existing $173 million bonding obligation. The total aggregate consideration includes a 2% net smelter return royalty on gold and silver produced through PMR.

Lagunas Norte represents a transformative opportunity in its mission to become a world-class global midtier metals producer in the near-term, Erdenebaatar explained. Based in Singapore, Boroo was formed three years ago and its portfolio also includes the Boroo gold mine in Mongolia and other associated assets.