SANTO DOMINGO, DOMINICAN REPUBLIC and TORONTO, CANADA, Nov. 16, 2009 (Marketwire) -- Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) -
All amounts expressed in US dollars
Pueblo Viejo Dominicana Corporation (PVDC), a company jointly owned by Barrick Gold Corporation (60%) and Goldcorp Inc. (40%), announced today that, following approval by the Dominican Republic National Congress earlier this month, His Excellency President Leonel Fernandez has ratified the amendments to the Special Lease Agreement ("SLA") for the Pueblo Viejo project.
"Pueblo Viejo represents the largest project in the history of the Dominican Republic, as such it is a clear indication of the trust and confidence that foreign investors have in our country's government, institutions and rule of law," said President Fernandez. "We welcome this important investment and are confident that the project will be developed and operated to the highest standards, becoming a showcase for the mining industry in Latin America."
"We are pleased to have achieved this major milestone in the advancement of Pueblo Viejo, which reflects the continued strong support from the Government of the Dominican Republic as well as its commitment to sustaining a positive investment climate," said Aaron Regent, Barrick's President and CEO. "The project has already led to significant local employment creation in its construction phase and we look forward to further economic and social development for the province and the nation."
Better reflecting the scope and scale of the project since its acquisition in 2006, the amendments to the SLA set out revised fiscal terms and clarify various administrative and operational matters to the mutual benefit of the State and PVDC in order to facilitate project development and future operations. "This landmark agreement is the result of strong collaboration between PVDC and the State and creates a foundation for a solid partnership for many years to come," said Kelvin Dushnisky, Barrick's Executive Vice President, Corporate Affairs.
Pueblo Viejo is a long life, advanced gold mining project in the Sanchez Ramirez province with a pre-production capital budget of approximately $2.7 billion(1). The project remains on schedule to enter production in the fourth quarter of 2011.
Barrick Gold Corporation's vision is to become the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained in this Press Release, including any information as to our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue", "budget", "may", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; changes in U.S. dollar interest rates or gold lease rates; risks arising from holding derivative instruments; legislative, political or economic developments in the jurisdictions in which the Company carries on business, including the Dominican Republic; operating or technical difficulties in connection with mining or development activities; employee relations; availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimates associated with our projects; adverse changes in our credit rating, level of indebtedness and liquidity, contests over title to properties, particularly title to undeveloped properties; the risks involved in the exploration, development and mining business. Certain of these factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
(1) Followed by $0.3 billion to complete phased expansion from 18,000 to 24,000 tonnes per day.