Barrick Sells Its Upstream Assets In Canada

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
455MM
Description

To acquire the upstream oil and gas subsidiary, Barrick Energy Inc.

Barrick Gold Corp. (NYSE: ABX) will sell off its upstream oil and gas subsidiary, Barrick Energy, to three separate buyers for C$455 million in cash and overriding royalty interests.

Barrick will collect about C$405 in cash and about C$50 million in overriding royalty interests from the transactions.

Barrick will sell its upstream oil and gas properties to three different buyers, the first of whom is Venturion Oil Ltd. for C$59 million. Whitecap Resources Inc. will buy other assets from Barrick for C$ 174 million and Canadian Natural Resources Ltd. will buy the remainder of the assets for about $173 million and an ORRI on certain lands.

In connection with entering into the agreement to divest Barrick Energy and the related transactions, Barrick expects to recognize a loss of approximately $500 million in the second quarter, approximately $90 million of which relates to goodwill, representing the difference between the net proceeds and the carrying value of Barrick Energy as at June 30, 2013.

Rothschild and Scotia Waterous are acting as financial advisors to Barrick with respect to the transactions. Norton Rose Fulbright Canada LLP is acting as legal counsel to Barrick.

The transactions are expected to close on or before July 31. Barrick Gold is based in Toronto.