Barrick Announces Agreement with Antofagasta for Gold-Copper Project.TORONTO -- All figures in US dollars. Barrick Gold Corporation (NYSE NYSE See: New York Stock Exchange :ABX ABX Antibiotics ABX Airborne Express ABX Abstracting ABX Albury, New South Wales, Australia - Albury (Airport Code) ABX Automatic Branch Exchange ABx Non-Antibiotics ABX Asset Backed Securities Index ABX Acoustic Bass Extension ) (TSX:ABX) (LSE LSE - Language Sensitive Editor :BGD) (SWX:ABX) (EURONEXT PARIS:ABX) announced today that it has entered into an agreement with Antofagasta PLC ("Antofagasta") to acquire 50% of Tethyan Copper Company's ("Tethyan") Reko Diq project and associated mineral interests in Pakistan ("Reko Diq") in the event that Antofagasta is successful in its bid to acquire Tethyan. Antofagasta announced earlier today that it had reached agreement with Tethyan on the terms of a cash offer of Australian $1.20 per share for the entire issued share capital of Tethyan. The offer has been unanimously approved by Tethyan's Board of Directors. Barrick and Antofagasta have agreed to share equally in Tethyan's 75% interest in the Reko Diq project as well as all of Tethyan's rights, licenses, and permits held in Pakistan. Tethyan has reported a total indicated mineral resource on the Reko Diq property of 1.27 billion tonnes grading 0.54% copper and 0.24 g/t gold and a total inferred mineral resource of 1.14 billion tonnes grading 0.48% copper and 0.31 g/t gold, calculated in accordance with JORC JORC Joint Ore Reserves Committee standards. Antofagasta has also announced that they have entered into a separate binding agreement with BHP Billiton whereby BHP Billiton's rights to claw-back a material interest in certain of Tethyan's mineral interests will be extinguished or acquired for compensation of $60 million. Barrick will reimburse Antofagasta approximately $100 million in cash for 50% of all of the acquisition costs, including the claw-back right, upon successful completion. Tethyan's principal assets are a 75% interest in the exploration license encompassing the highly prospective Reko Diq project located in the Chagai Hills region of Pakistan, which includes the mineral resource zones known as Tanjeel Mineral Resource and the Western Porphyries, and a 100% interest in certain other licenses in the region. This mining district hosts significant gold and copper porphyry deposits as part of an extended gold and copper belt. Reserve and resource estimates have been reported by Tethyan as conforming with JORC standards. Additional information relating to Tethyan's reported resources on the Reko Diq property, including detail as to the components of such resources and related assumptions, is set out in Tethyan's press release of January 11, 2006. Antofagasta PLC is a Chilean-based mining group listed on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . Tethyan Copper Company Limited is a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. listed on the Australian Stock Exchange Australian Stock Exchange (ASX) Australia's major securities market, formed when the six state stock exchanges (Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney stock exchanges) were merged in 1987. . Barrick's vision is to be the world's best gold company by finding, developing and producing quality reserves in a profitable and socially responsible manner. Barrick Gold Corporation (PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. :ABX) (NYSE:ABX) (TSX:ABX) (Swiss:ABX) (LSE:BGD) |
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