Barrick Gold Corporation has announced in a press release that it will be selling four non-core assets to Kinross Gold Corporation and Waterton Precious Metals Fund II Cayman, LP for a total of $720 million in cash.
The sale of the assets is part of the company's effort to reduce its debt, which it said is on track to meet.
Barrick said in the press release that Kinross will be acquiring the company's 50 percent interest in the Round Mountain mine and its 100 percent interest in the Bald Mountain mine for $610 million in cash.
Separately, the company will be selling its 70 percent interest in Spring Valley project and its 100 percent interest in the Ruby Hill mine to subsidiaries of Waterton for $110 million in cash.
Kelvin Dushnisky, the president of Barrick, said in the press release that the sale of their assets is consistent with the company's strategy "to create long-term value for our shareholders."
"As we move into 2016 and beyond, we will continue to take steps to strengthen our balance sheet, but we will balance debt repayments with investments to drive future growth in free cash flow and EBITDA," he said.
Reuters adds that the deal is the latest in Barrick's sale process that began in August.
However, the company still left with two assets that it's trying to sell, its Golden Sunlight mine in Montana and its Hilltop asset in Nevada.
Reuters adds that the mining industry considers those two assets as less attractive.
The company said that the two assets would remain part of its portfolio for now, but they will continue to look for options to realize value for the assets.
Barrick said in the press release that it is on track to meet its $3 billion debt reduction target for 2015.
The debt reduction target, when completed, will represent a 23 percent in Barrick's total debt since the start of the year.
Barrick adds in the press release that it expects to complete the transaction with Waterton by the end of 2015.
The transaction with Kinross is expected to be completed by mid-January 2016.
