During the bear market, even the largest gold producer in the world, Barrick Gold, was struggling and at one point more than $13 billion in debt. They had no choice but to sell projects to reduce debt levels. Unfortunately for them, they didn’t just jettison low grade low potential projects, they literally threw out the baby with the bath water.
In 2007 Barrick purchased this project for a then not unreasonable $141.5 million They spent more than $100 million on infrastructure. K92 bought what effectively was a turnkey project with extremely high ore grades for just pennies on the dollar.
As if to add insult to injury, Alex Davidson, the Executive Vice President of Barrick, in charge of worldwide exploration and corporate development jumped ship and joined K92 shortly Barrick shed the asset.
Bry Slusarchuk details and describes the series of events that may be one of the greatest acquisitions of all time!
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