Barrick to Sell Chile Gold Project for $50M to Boroo Unit

Barrick Mining has agreed to sell its Alturas gold project in Chile to a unit of Boroo for $50M in cash and a 0.5% net smelter return royalty. The deal marks a strategic decision by Barrick to divest a non-core asset and focus on its core operations. The transaction is expected to close in the fourth quarter of 2022.

Barrick Mining Corporation (NYSE:B) has announced the sale of its Alturas gold project in Chile to a unit of Boroo Pte Ltd for an upfront payment of $50 million. The deal includes a 0.5% net smelter return royalty on gold and silver production, capped at 2 million ounces of gold equivalent, with Boroo having the option to repurchase the royalty for $10 million within four years of closing [1].

The transaction, expected to complete in Q3 2025, involves the sale of Barrick's subsidiary Compañia Minera Salitrales SpA. CEO Mark Bristow emphasized that while Chile remains strategically important for Barrick, this divestment aligns with the company's strategy to focus on Tier One gold and copper operations [1].

Barrick's $50 million sale of the Alturas Project to Boroo represents a strategic portfolio optimization move rather than a significant financial transaction for a company of Barrick's scale. The deal structure—combining upfront cash with a 0.5% net smelter royalty—provides Barrick with immediate capital while maintaining some upside exposure limited to the first 2 million gold-equivalent ounces [1].

The Alturas divestiture follows a similar playbook to Barrick's 2021 sale of Lagunas Norte to the same buyer, Boroo, demonstrating a consistent approach to non-core asset rationalization. While divesting Alturas, Barrick maintains its Chilean footprint through stakes in the Zaldivar copper mine and the El Alto and Norte Abierto projects, indicating selective rather than wholesale exit from the jurisdiction [1].

The expected Q3 2025 completion suggests minimal regulatory hurdles, with the transaction's modest size unlikely to materially impact Barrick's overall financial position but supporting its disciplined capital allocation strategy and focus on higher-return opportunities within its development pipeline [1].

References:
[1] https://www.stocktitan.net/news/B/barrick-announces-sale-of-alturas-vwv07pjlleyj.html