Canada’s Barrick Gold Corporation has confirmed that it is in discussions with China National Gold Group Corporation regarding the sale of its holding in African Barrick Gold (ABG).
The talks are at a preliminary stage, the company said.
Barrick said it has “adopted a renewed focus on maximizing shareholder value through a disciplined capital allocation program”, which includes optimising its portfolio of assets and maximizing returns on investment and free cash flow. The preliminary discussions relating to the company’s 73.9 per cent stake in ABG form part of this programme, the company said, adding that it remains both committed to and confident in ABG, its qualified and experienced management team and its portfolio of world-class assets.
Barrick said there can be no certainty that the discussions will result in the acquisition of all or part of Barrick's holding in ABG, and that shareholders would be made an offer if an offer for ABG was received.
