Barrick Gold To Divest Barrick Energy - Quick Facts

(RTTNews) - Barrick Gold Corp. (ABX) announced that it has entered into an agreement to divest Barrick Energy Inc., as part of its portfolio optimization strategy. In consideration for the sale of Barrick Energy and certain related transactions, Barrick said it will receive total consideration of about C$455 million, comprised of cash proceeds of C$405 million on closing, subject to customary closing adjustments, plus a gross overriding royalty on certain lands, the estimated value of which is C$50 million.

This transactions, which are expected to close on or prior to July 31, 2013, consist of the sale of certain assets to Venturion Oil for C$59 million, the sale of certain assets to Whitecap Resources Inc. (WCP.TO) for C$174 million and after giving effect to the asset sale transactions, the sale of the shares of Barrick Energy and its assets to Canadian Natural Resources Ltd. (CNQ, CNQ.TO) for about C$173 million and a gross overriding royalty on certain lands.

In connection with agreement to divest Barrick Energy and the related transactions, Barrick expects to recognize a loss of approximately US$500 million in the second quarter, approximately US$90 million of which relates to goodwill, representing the difference between the net proceeds and the carrying value of Barrick Energy as at June 30, 2013.