Barrick reaches deal with Pakistan to restart Reko Diq copper-gold project (NYSE: GOLD)
Barrick Gold (NYSE: GOLD) says it has reached a framework agreement with the governments of Pakistan and the country’s Balochistan province that provides for work to resume on of the Reko Diq projecthost to one of the world’s largest undeveloped open pit copper and gold deposits.
The project was suspended in 2011 due to a dispute over the legality of its licensing process.
The reconstituted project will be held 50% by Barrick and 50% by Pakistan stakeholders; Barrick will be the operator of the project which will be granted a mining lease, exploration license, surface rights and a mineral agreement stabilizing the fiscal regime applicable to the project for a specified period.
In a separate agreement, the Pakistani government will buy out the interest in the mine of Barrick’s partner Antofagasta (OTC: ANFGF) for $ 900M, and its share in the project will be replaced project by the Pakistani parties.
Pakistani officials say the new deal will represent the largest single investment in the country, with Barrick and Pakistan investing ~ $ 10B.
Barrick’s new performance-based dividend policy could be a catalyst to re-rate the stock, Investing on the Spectrum writes in a bullish analysis posted recently on Seeking Alpha.