Barrick Buys Teck’s Hemlo Stake

Barrick Gold and Teck agreed in late February 2009 to purchase by Barrick for $65 million of Teck’s 50% interest in the Williams and David Bell gold mines in the Hemlo district of Ontario, 350 km east of Thunder Bay. Assuming receipt of regulatory approvals, the transaction would be effective from January 1, 2009. Barrick already owns the other 50% of the Hemlo operations.

The Hemlo mines produced 260,000 oz of gold in 2008, down from 337,000 oz in 2007. Teck’s share of profits from the mines was $29 million in 2008, up from $19 million in 2007. In its 2008 year-end report, Teck reported that most of the highgrade underground sections of the mines have now been depleted and that a greater percentage of future mill feed will come from the lower-grade open-pit.

As featured in Womp 2009 Vol 03 - www.womp-int.com