Barrick Gold (ABX-T) has bought Emperor Mines(EMP-A) 20% stake in the Porgera gold mine in Papua New Guinea for US$250 million, bringing Barricks interest to 95%.
Selling its stake has enabled Emperor to become debt-free and hedge-free with A$70 million in cash left in the bank to spend on growth projects once a shareholder capital return is completed.
Barrick cleared its hedge book during the first quarter, during which time the average spot price for gold was US$650 per oz. while the companys average sale price was US$386 per oz.
Barricks additional interest in Porgera officially began 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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