Barrick Gold (ABX-T, ABX-N) has bought Emperor Mines'(EMPMY-O, EMP-A) 20% stake in the Porgera gold mine, in Papua New Guinea, for US$250 million, bringing Barrick’s interest to 95%.
Selling its stake has allowed Emperor to become debt and hedge-free; after a planned shareholder capital return of A5 per share is completed, the company will have about A$70 million in cash.
Barrick’s interest in Porgera was officially boosted as of April 1, 2007, just before the transaction was announced on April 12.
Porgera produced 542,000 oz. gold in 2006 and has a proven and probable reserve of 9.42 million oz. gold.
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