Company News

UPDATE 1-Saracen Mineral to buy Barrick's Super Pit gold mine stake for $750 mln

* Saracen buys WA mine stake for $750 million

* Deal partially funded through A$796 mln capital raising

* World’s biggest gold miner to be co’s JV partner (Adds details of deal, Barrick’s comment)

Nov 18 (Reuters) - Australia’s Saracen Mineral Holdings Ltd said on Monday it would buy Canadian-listed Barrick Gold Corp’s 50% stake in the Super Pit gold mine in Western Australia for $750 million.

The Super Pit is one of Australia’s largest gold mines with an average production of 660,000 ounces per annum at an all-in sustaining cost of about A$1,100 per ounce, according to Saracen.

Saracen will buy Barrick’s half of Kalgoorlie Consolidated Gold Mines Joint Venture, which owns and operates the Super Pit gold mine. U.S.-listed Newmont Goldcorp Corp, the world’s largest gold miner, retains the other 50% of the joint venture.

The Australian gold miner will fund the acquisition partially through a A$796 million ($545.66 million) capital raising and the balance through a loan of A$450 million.

The divestment is part of Barrick’s, the world’s second largest gold producer, drive to dispose of non-core assets.

“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 Canadian gold producer said in a statement.

The deal is expected to be completed in the December quarter and is subject to regulatory approvals from the West Australian government.

$1 = 1.4588 Australian dollars Reporting by Shreya Mariam Job in Bengaluru; Editing by Peter Cooney and Sam Holmes