Saracen cashed up for Super Pit buy

Saracen Mineral Holdings has secured funding that it needs to acquire Barrick Gold’s 50 per cent interest in the Super Pit gold mine in Western Australia for $US750 million ($1.1 billion).

The buyer has raised around $701 million through an institutional placement and offer that will be used to partially fund the acquisition.

Saracen will raise another $95 million through a retail entitlement offer to Australian and New Zealand-based shareholders.

Managing director Raleigh Finlayson looked ahead at the prospect of owning half of the iconic Kalgoorlie gold mine with the funding locked away.

“We received strong support from both existing and new institutional shareholders, which is a fantastic endorsement of a transformational acquisition that underwrites Saracen’s future as a leading all-Australian gold miner,” Finlayson said.

“With the acquisition funding now secure, we look forward to closing the transaction and working collaboratively with Newmont Goldcorp to fully unlock the potential of the large, long life, high quality Super Pit.”

Saracen plans to use a $450 million loan to cover the remaining balance of the acquisition.

The Perth-based company emerged as the buyer of Barrick’s stake after years of speculation that the Canadian company would offload its share in the mine.

Earlier this year, Barrick revealed that Northern Star Resources was another company that had shown interest in the 50 per cent stake with a bid.

Once Saracen has taken over Barrick’s share of the Super Pit, Newmont will remain the operator of the Kalgoorlie Consolidated Gold Mines joint venture.

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