Barrick and Goldcorp seek sale of Nevada mine

By VCPOST Staff Reporter

Nov 15, 2013 07:45 PM EST

Canadian gold producers Barrick Gold and Goldcorp announced their intention to sell their jointly owned Marigold mine. This was according to a report published by Reuters.

Goldcorp owns a two-thirds stake in the Nevada mine. The company has sought the services of BMO Capital Markets. Barrick, which owns the remaining one-third, has separately hired RBC Capital Markets to explore a sale of Marigold, said the report.

Large-scale gold mining companies like Barrick and Goldcorp prefer to either shut down or sell higher-cost assets and enrich their mine portfolios. Gold has been down over 20% of late. On Friday, it was priced at USD1,290 per ounce. The Marigold project produced less than 40,000 ounces of gold in its third quarter, the report said.

According to Bloomberg, unnamed sources sid BMO is expecting to fetch around USD200 million for Marigold, the report stated.

Barrick, Goldcorp, RBC, and BMO have yet to comment on the matter, Reuters said.

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