Barrick Increases Porgera Stake
Barrick Gold announced in mid-April that
it entered into a definitive purchase and
sale agreement with Emperor Mines
regarding Emperor’s 20% interest in the
Porgera gold mine in Papua New Guinea.
Upon completion of the transaction, Barrick’s
interest in Porgera would increase
from 75% to 95%. Total consideration for
the transaction was $250 million in cash
plus an adjustment amount. Barrick was
to be entitled to the production and the
economic benefit of the purchased 20%
effective April 1, 2007.
Barrick acquired its 75% interest in
Porgera through its acquisition of Placer
Dome in January 2006.
Porgera produced 542,000 oz of gold in
2006 and has proven and probable reserves
of 9.42 million oz. The deposit is mined
using both open-pit and underground mining
methods. In 2006, mill feed on a tonnage
basis was sourced 85% from the open
pit and stockpiled ore and 15% from
underground. Underground ore accounted
for 30% of the contained gold in mill feed.