By: Business insider Africa

Barrick Gold Corporation has announced an agreement to divest its interests in the Tongon gold mine in Côte d'Ivoire to the Abidjan-based Atlantic Group. The deal, valued at up to $305 million, is part of the Canadian miner's ongoing strategy to streamline its portfolio and strengthen its financial position.

The market responded positively to the news, with Barrick's shares rising 3% on the Toronto Stock Exchange following the announcement.

This transaction aligns with Barrick's broader effort to monetize non-core assets, particularly in regions where operational costs have risen. Since its merger with Randgold Resources in 2019, the company has consistently sharpened its strategic focus on high-margin, long-life operations, with an increasing emphasis on copper and key projects in Africa and the Middle East.

Deal Structure and Use of Proceeds

The financial terms of the agreement include an immediate cash payment of $192 million. This figure accounts for the scheduled repayment of a $23 million shareholder loan, which is due within six months of the deal's closing.

Barrick has stated that the proceeds from the sale will be used to reinforce its balance sheet and fund its ongoing growth initiatives. The transaction is anticipated to be finalized by the end of 2025, pending the receipt of necessary regulatory and partner approvals.