Saudi Arabian Mining Co. — Capital/Financing Update 2014

Jul 13, 2014

Maaden Announces Entering into an Agreement to Establish a Joint Venture with Barrick Gold Corporation to Acquire, Develop and Operate the Jabal Sayid Copper Project

1211 · 13/07/2014 09:36:13 · Announcement #35070 · View on Saudi Exchange

Maaden Announces Entering into an Agreement to Establish a Joint Venture with Barrick Gold Corporation to Acquire, Develop and Operate the Jabal Sayid Copper Project

The Saudi Arabian Mining Company (Maaden) announces today 16/09/1435H (corresponding to 13/07/2014G) entering into an agreement to form a joint venture with Barrick Gold Corporation (Barrick) for the purpose of establishing a limited liability company that will acquire, develop and operate the Jabal Sayid copper project located 120 km southeast of Medina, Saudi Arabia (the Project).

Maaden and Barrick will each own 50% of the new limited liability company, and Maaden will invest approximately USD210MN to acquire its 50% share in the Project assets, rights and existing infrastructures free of any debt or obligations. The consideration paid by Maaden will be funded through available cash and facilities. The acquisition is targeted to be completed in Q4 2014 and is subject to customary closing conditions and the approval of related authorities. Hence, in principal the approvals from the ministry of petroleum and mineral resources have been obtained for the transaction including the transfer of the mining and exploration licenses to the new limited liability company.

The Project has been constructed and mechanically completed. Commissioning activities will begin shortly. Production is expected to commence in late 2015 and when fully operational the project will produce approximately 45,000-60,000 tonnes of copper in concentrate per year. Estimated copper reserves for the project is approximately 650,000 tones and the expected mine life is approximately 15 years but future exploration work will be carried out within the mining license area and the exploration license surrounding the mine with the aim of extending the mine life.

Any new developments regarding this matter will be announced in due course.

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