Barrick To Sell Cowal Mine To Evolution Mining For US$550 Mln.

(RTTNews) - Canadian gold producer Barrick Gold Corp (ABX, ABX.TO) on Sunday said it has agreed to sell its Cowal mine in New South Wales, Australia to Evolution Mining for US$550 million in cash on closing.

Barrick said proceeds from the sale of Cowal will be used to pay down debt, and that the divestment of Cowal would also contribute to reduced general and administrative costs.

The transaction is expected to be completed in the third quarter of 2015.

"The sale of Cowal is consistent with the strategy we have outlined to create long-term value for our owners, making a significant contribution to our debt reduction target while further focusing the geographic footprint of our portfolio," said Co-President Kelvin Dushnisky."

Evolution Mining was created in late 2011 as a mid-tier Australian gold producer through a merger of Catalpa Resources and Conquest Mining. Evolution currently operates five gold and silver mines in Queensland and Western Australia.