Barrick Gold Sells Australian Gold Mine for $22.4 Million

Barrick Gold (NYSE: ABX  ) announced yesterday that it is divesting its Western Australia Plutonic gold mine to Northern Star Resources for Australian $25 million (U.S. $22.4 million ).

The mine contains proven and probable reserves of 0.2 million ounces, measured and indicated resources of 0.8 million ounces, and 1.0 million ounces of inferred resources, according to the company. In the first nine months of this year, Barrick's mine produced 86,000 ounces at all-in sustaining costs of $1,110 per ounce for a total of $95.4 million.

According to the Sydney Morning Herald, the mine remained profitable in 2013 despite plummeting gold prices. The new acquisition will double Northern Star's current production, and Northern Star Managing Director Bill Beament calls the deal a "screaming buy" at less than 10% of the company's market cap, according to the Sydney Morning Herald.

The acquisition is expected to be fully completed in February. Northern Star says the acquisition price includes a fully operational mine with processing plant, a 15MW gas-fired power station, and an 8MW diesel back-up station.

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