Friday, April 16, 2010

Barrick (TSE:ABX) Sells Sedibelo to Platmin (TSE:PPN)

Barrick Gold (TSE:ABX) has sold its Sedibelo platinum project to Platmin (TSE:PPN). The Sedibelo platinum project is located in South Africa.

The approximate $60 million paid by Platmin is for a 10 percent stake held by Barrick in the project.

How the deal breaks down is the stake itself is valued at $15 million, while additional "long lead items" worth up to $45 million will also be included in the deal.

Once Barrick decided not to increase its stake in Sedibelo, it was only a matter of time before they unloaded it. For Platmin it makes sense because it is located close to their Pilanesberg mine, the flagship project of the company.

The deal is expected to close sometime in the second quarter.

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