Barrick Gold Corp. is selling its interest in some Nevada mines for $720 million in cash to help pare debt and focus more on core parts of its business.
The Toronto-based company said Thursday that it will sell its 100-percent interest in Bald Mountain mine and a 50-percent stake in Round Mountain mine for $610 million to Kinross Gold Corp. The companies also are forming a joint venture that will own land on the Bald Mountain property.
Barrick also is also selling its stakes in a Spring Valley project and the Ruby Hill mine for $110 million to subsidiaries of Waterton Precious Metals Fund II Cayman LP.
The company said the deals will help it strengthen its balance sheet and focus on core mines. Barrick Gold said it remains on track to cut its total debt by 23 percent since the start of the year.
U.S.-traded shares of Barrick Gold climbed 3 percent, or 22 cents, to $7.50 Thursday after the deal was announced, while broader indexes fell around 1 percent. Barrick’s stock price had fallen around 32 percent so far this year, as of Wednesday’s close.