In a move aligned with its ongoing portfolio reshaping, Barrick Mining has announced its intention to sell its interests in the Tongon gold mine and associated exploration assets in Côte d’Ivoire, in a transaction valued at up to US$305 million.
What’s in the Deal
- Barrick will receive an upfront cash consideration of $192 million, which includes repayment of a $23 million shareholder loan within six months after closing.
- Additional contingent payments of up to $113 million are structured around future gold price performance and resource conversion metrics.
- The transaction is expected to complete in late 2025, pending regulatory approvals and customary closing conditions.
- Barrick says proceeds from the sale will be used mainly to fortify its balance sheet and to sustain capital discipline in higher-priority assets.
Why Barrick Is Divesting
This sale is part of Barrick’s broader strategy to exit non-core assets, freeing up capital and focus for its portfolio of high-margin, long-life operations. Tongon, having exceeded its originally anticipated life through exploration success, is now being monetized at a stage when its production and reserve outlook are maturing.
The company is doubling down on its strengths in copper, its strategic presence in specific African and Middle Eastern jurisdictions, and high-performing mines that align with future growth targets.
Impacts & Stakes
- The transaction supports Barrick’s goal of capital discipline, enabling the redirection of resources to more promising ventures.
- The contingent component ensures Barrick retains some upside exposure if conditions (gold prices, resource upgrades) perform favorably.
- The buyer—Atlantic Group—will take over operating control, local partnerships, and ongoing obligations in respect of exploration and support infrastructure.
- For Côte d’Ivoire, the deal means new ownership at Tongon, which could influence mine operations, local procurement, community engagement, and national royalty frameworks.
What to Watch
- Regulatory approvals from Ivorian authorities and mining regulators will be critical, particularly given government stakes and local interests.
- Transition planning: handover of operations, workforce, local contracts, and social license obligations must proceed smoothly to avoid disruption.
- Operational performance under new ownership: how Atlantic optimizes costs, systems, and exploration potential will determine future viability.
- The contingent earn-out outcomes: whether Barrick will receive the full $113 million in additional payments will depend on executing against key metrics over coming years.
This sale marks a significant shift in Barrick’s African portfolio. By offloading Tongon, Barrick is signaling firm intent to sharpen its capital allocation, focus on core assets, and weather commodity cycles with a cleaner balance sheet. The success of this move will hinge on seamless execution, market conditions, and the performance under new stewardship.