Barrick Gold Sells Tongon Mine to Atlantic Group in $305M Deal
Barrick Gold Corporation has sealed a deal to sell its majority stake in the Tongon gold mine and associated exploration properties in Côte d'Ivoire to Atlantic Group SA, a diversified banking conglomerate based in Abidjan. The transaction, valued at up to $305 million, marks a significant strategic expansion for Atlantic Group into the mining sector.
The sale, structured to balance immediate returns and future potential, involves an initial cash payment of $192 million, including a $23 million shareholder loan repayment within six months. Additionally, contingent payments of up to $113 million are tied to gold price performance over 2.5 years and resource conversion success over 5 years. For Atlantic Group, this acquisition extends its business portfolio beyond financial services and establishes an immediate foothold in gold production with a proven operation.
For Barrick, the divestment aligns with its corporate strategy focused on streamlining its global asset portfolio and maximizing shareholder returns. The transaction provides Barrick with enhanced financial flexibility, allowing it to redirect capital towards core operations or debt reduction, and concentrate resources on tier-one assets with longer life spans and lower production costs. The Tongon operation, a significant contributor to both Barrick's portfolio and the Ivorian economy, has generated over $2 billion for Côte d'Ivoire's economy since its first gold pour in 2010. The transaction is expected to be completed by late 2025, pending government approvals.
The sale of the Tongon gold mine and associated exploration properties to Atlantic Group SA for up to $305 million represents a strategic move in West African mining. The transaction allows Barrick to optimize its portfolio and financial flexibility, while Atlantic Group expands its business portfolio into the mining sector.
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