Barrick mulls Kalgoorlie bid of roughly $1.3 billion by China's Minjar: sources

Thu Nov 24, 2016 2:20pm EST
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By John Tilak and Susan Taylor

TORONTO (Reuters) - Barrick Gold is reviewing the financial backing behind an approximately $1.3 billion bid for its stake in Australia's Kalgoorlie mine by Minjar Gold, a unit of Shanghai-listed Shandong Tyan Home, two sources told Reuters.

Toronto-based Barrick, the world's largest gold producer, is studying the offer for the 50 percent stake to ensure Minjar has adequate resources and support to complete the transaction, said the sources, who declined to be identified as the matter is private. Barrick declined to comment.

Little-known Minjar has trumped offers by Australian, Chinese and Canadian companies for the asset, the sources said.

Newmont Mining, Barrick's joint venture partner at Kalgoorlie and mine operator, has said it was interested in buying the remaining stake, but price has been a sticking a point.

It was unclear if Newmont was interested in matching Minjar's offer, but the sources said the price made a counter-offer less likely.

Newmont spokesman Omar Jabara declined to comment, saying only that "Barrick will decide which of the offers it received makes the most sense for them."

Minjar, which is based in Perth, Australia and incorporated in that country, is a subsidiary of Shandong Tyan Home, which is primarily involved in Chinese property development and management.

With the recent drop in gold prices, it is uncertain if Minjar will continue to stand by its offer, the sources said.   Continued...