Barrick Gold sells most of its shares in Chinese miner Shandong Gold for US$210M

Toronto-based Barrick Gold Corp. says it has cashed in most of its shares in Hong Kong-listed Shandong Gold Mining, taking advantage of an increase in price as world gold prices strengthen.

It says it realized US$210 million (C$285 million) from the sale of 79.3 million shares of the Chinese state-controlled company at a price of HK$20.50 per share

Barrick says it purchased the shares in the fourth quarter of 2018 at HK$10.50 per share.

Barrick continues to hold 10.25 million or about two per cent of Shandong Gold’s H-class shares as part of what it calls its commitment to the long-term strategic partnership.

It says the shares it sold were placed primarily with institutional shareholders.

In May, Shandong Gold agreed to buy Canadian junior TMAC Resources Inc. for around $230 million, an offer that is to be voted on by TMAC shareholders next week. TMAC owns the Hope Bay gold mining property in Nunavut.

This report by The Canadian Press was first published June 16, 2020.

Companies in this story: (TSX:ABX, TSX:TMR)