TORONTO (miningweekly.com) – The world’s largest gold miner by output, Barrick Gold, on Monday announced that it would divest 13.5% of its interest in Tanzania-focused African Barrick Gold (ABG).

Barrick said that it would place about 41-million ABG ordinary shares to institutional investors, representing about 10% of the issued ordinary share capital of ABG and about 13.5% of Barrick's holding in ABG.

The placing was being conducted through an accelerated book-build offering process. The pricing would be announced at a later date.

Barrick had appointed UBS Limited, JP Morgan Securities and RBC Europe to act as joint bookrunners and placing agents.

The placed shares would rank equally with ABG's ordinary shares.

After the placement had been completed, Barrick said it would not sell any further ABG shares without the consent of the joint bookrunners for a period of 120 days, except that consent shall not be required in the event of an offer for the entire issued share capital of ABG, or if a single corporate or strategic purchaser as part of a single transaction bought 10% to 20% of Barrick's remaining ABG shares – provided that such a purchaser agrees to be bound by an equivalent restriction for the remainder of the lock-up period.


Toronto-based Barrick had unsuccessfully tried to sell ABG to State-owned China National Gold Group, in 2012, but that deal fell apart in January 2013.

ABG was one of many precious metal miners battling to turn a profit after gold recorded the steepest price falls in a generation last year, from which it had yet to recover. The price of gold was more than 20% lower year-on-year, prompting many producers to shelve projects, reduce overheads and put noncore assets on the block.

The miner had reported output of 641 931 oz of gold last year, beating its guidance by 7% on strong performances from its North Mara and Buzwagi mines.