Barrick Gold Corporation's subsidiary completes funding of mining project
April, 2006 - Lima, Peru
Minera Barrick Misquichilca S.A., a wholly owned subsidiary of Canadian company Barrick Gold Corporation, has closed financial leases for an aggregate amount of US$100 million, of which Citibank del Peru S.A. provided US$80 million and Banco de Credito del Peru provided US$20 million. The term of the financial leases is 5 years. Closing occurred in the first and second quarters and disbursements are scheduled periodically.
This completes the funding of the construction of the Alto Chicama-Lagunas Norte gold project, in the Peruvian northern coast, which on June 16 achieved start-up ahead of the original third quarter schedule and within its US$340 million budget.
The Alto Chicama-Lagunas Norte project, which is an open-pit mining operation, is expected to produce 545,000-550,000 ounces of gold this year at a cash cost of US$110-US$120 per ounce. Production is expected to average approximately 800,000 ounces of gold per year. Based on existing reserves of 9.1 million ounces of gold, the minimum life of the project is expected to be 10 years.
Barrick Gold Corporation and Minera Barrick Misquichilca took counsel from Rodrigo, Elías & Medrano Abogados, through partners Luis Carlos Rodrigo P. and Ramon Vidurrizaga. General counsel Manuel Fumagalli also advised Minera Barrick Misquichilca.
Citibank del Peru S.A. was advised by partner Ricardo Escobar, then at Muñiz, Ramirez, Perez-Taiman & Luna Victoria Abogados. Banco de Credito del Peru was advised by in-house counsel Diego Peschiera.
